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V3233-21 29 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · usufructo

The creation of usufructs over rural land is subject to but exempt from VAT

A company inquired whether the transfer of usufructs over rural land for CO2 absorption projects through tree plantations was subject to VAT. The DGT determines that the operation is a supply of services subject to the tax, but that it is exempt as it concerns rural land intended for forestry exploitation.

The question raised

Whether said usufructs are subject to Value Added Tax

The DGT's ruling

The creation of a usufruct is a supply of services subject to VAT as it constitutes a transfer of the use or enjoyment of assets. However, these real rights of enjoyment over rural land are exempt from the tax when they are intended for the exploitation of a rural estate, such as in the case of forest plantations. This exemption remains regardless of whether the purpose is the absorption of carbon dioxide.

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