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V3012-18 23 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

The transfer of an administrative concession may be subject to VAT if ownership powers are attributed

A UK company inquires about the acquisition of a commercial premises concession and its subsequent leasing. The DGT determines that the transfer of the concession is a supply of goods subject to VAT (although exempt as a second supply of a building) and analyzes the existence of a permanent establishment.

The question raised

Question raised 1.- Liability for Value Added Tax of the aforementioned transfer.

The DGT's ruling

The transfer of an administrative concession constitutes a supply of goods subject to VAT if the powers inherent to an owner are attributed to the acquirer. In this case, as it is a second supply of a building, the transaction is subject to but exempt from VAT, unless the exemption is waived. No permanent establishment exists if the non-resident entity does not have its own or subcontracted human and technical resources for the activity. If the exemption is waived, the reverse charge mechanism applies and the acquirer shall be the taxable person.

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