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V3490-20 2 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción al impuesto

Sale of vehicles recovered by an insurer is subject to VAT and counts towards turnover

An insurer has requested clarification on whether the sale of vehicles recovered following theft or robbery claims is subject to VAT and how this affects its pro rata calculation. The DGT has ruled that such sales are subject to the tax and must be included in the company's turnover.

The question raised

Liability for Value Added Tax on the delivery of vehicles by the taxpayer to third parties and the treatment thereof for the purposes of determining the volume of operations and their inclusion in the calculation of the final pro rata percentage.

The DGT's ruling

The delivery of vehicles by the insurer is subject to VAT if it is carried out in the course of a business activity or if they form part of its business assets. The technical exemption does not apply because the vehicles are acquired from private individuals without VAT being passed on. These operations form part of the volume of operations for determining the pro rata, whether under the general regime or the special regime for used goods.

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