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V3486-15 12 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of an autonomous economic unit is not subject to VAT

A query was raised regarding whether the sale of an undivided half-share of a pharmacy (including furniture, stock, goodwill, and premises) is subject to VAT, given that the seller is under the equivalence surcharge regime. The DGT ruled that the transaction is not subject to VAT if the transferred elements constitute an autonomous economic unit.

The question raised

Taxability of the transaction. Obligation to settle and pay the tax on the transaction.

The DGT's ruling

The transfer of a set of tangible and intangible elements that constitute an autonomous economic unit capable of carrying out an activity by its own means is not subject to VAT pursuant to art. 7.1 of Law 37/1992. If the transfer is merely a transfer of assets without an organizational structure, it shall be subject to the tax. In the event that it is subject to the tax, the transferor under the equivalence surcharge regime must charge the VAT, but is not obliged to settle or pay it to the Tax Agency, except in the case of taxable and non-exempt supplies of real estate.

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