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V3184-21 22 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · actividad exenta

Transfer of a vehicle used for exempt activities is subject to but exempt from VAT if no deduction was claimed

A company administrator inquires about the VAT treatment of a vehicle received following the liquidation of their company. The DGT rules that the transfer is subject to but exempt from VAT if the asset was used for exempt activities and no input tax was deducted upon its acquisition, unless it is an investment asset within a regularisation period.

The question raised

VAT taxation by the consultant following the allocation of the vehicle as a consequence of the liquidation of the company.

The DGT's ruling

The delivery of a vehicle used for the business activities of a company is subject to VAT. If the vehicle was used in exempt operations and the tax could not be deducted upon its acquisition, the delivery shall be subject but exempt pursuant to Article 20.One.24 of Law 37/1992. However, if the vehicle is an investment asset and the delivery occurs within the adjustment period, the transaction shall be subject and not exempt. In the event that only a portion of the vehicle was used for business purposes, the taxable base shall be calculated only on the percentage of business use.

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