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V3088-16 4 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a gym business unit with premises sublet may be exempt from VAT

A gym company has enquired whether the transfer of all its business assets, involving the subletting of the premises to the acquirer, is subject to VAT. The DGT has ruled that it will not be subject to VAT if an autonomous economic unit capable of carrying out the activity is transferred.

The question raised

Liability for Value Added Tax regarding the operation.

The DGT's ruling

The transfer of an autonomous economic unit is not subject to VAT pursuant to Article 7.1 of Law 37/1992. The fact that the real estate is not transferred, but rather granted through sublease, does not prevent the operation from being a transfer of an economic unit. For it to be non-subject, the transfer must include the organizational structure of production factors necessary to carry out the activity.

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