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V3055-20 13 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo

Free transfer of a plot may be subject to VAT if deemed self-consumption of business assets

A public entity has enquired whether the free transfer of a plot to its Autonomous Community is subject to VAT. The DGT indicates that the transfer could be subject to VAT if the plot forms part of the applicant's business assets, as it would be considered an operation assimilated to self-consumption.

The question raised

Whether said delivery would be subject to Value Added Tax.

The DGT's ruling

The delivery of a plot may be subject to VAT if it is carried out within the framework of a business activity, being treated as an operation assimilated to self-consumption pursuant to Article 9.1 of Law 37/1992. However, if the plot is not assigned to the business or professional assets of the transferor, its free delivery shall not be subject to the tax. Furthermore, if the land is buildable or undergoing urbanization, the exemption for rural land shall not apply.

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