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V3206-21 23 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renuncia a la exención

Waiver of VAT exemption on rural property transfers permitted if the purchaser is entitled to tax deduction

A rural property owner sought clarification on whether they could waive the VAT exemption when selling land to a company. The Directorate-General for Taxes (DGT) ruled that this is possible provided the buyer is a taxable person entitled to VAT deduction.

The question raised

Possibility for the consulting transferor to waive the exemption from Value Added Tax.

The DGT's ruling

The transfer of non-buildable rural land is exempt from VAT, but the seller may waive said exemption. To do so, this must be reliably communicated to the acquirer before or during delivery, and the acquirer must declare their status as a taxable person with the right to deduction. In the event of a waiver, the taxable person for the transaction shall be the acquiring company.

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