Skip to content
Back to index
V3293-14 9 December 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · primera entrega

Delivery of buildings under construction is subject to VAT and does not benefit from the second delivery exemption

The applicant asks whether the purchase of a property from SAREB is subject to VAT or Transfer Tax (ITP). The DGT rules that the exemption for second and subsequent deliveries only applies if the building is completed, and that the delivery of works under construction is subject to VAT.

The question raised

Liability of the operation for Value Added Tax or for Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

To apply the exemption for second and subsequent deliveries, it is an essential requirement that the building be completed. If the object is a building in the construction phase, the concepts of first or second delivery and the exemption do not apply. Completion is generally evidenced by the final certificate of works. If the building is under construction, deliveries made by entrepreneurs are subject to and not exempt from VAT.

Book your free first meeting