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V3515-20 10 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · unidad económica autónoma

Transfer of a business unit is exempt from VAT even if properties are transferred via lease

A company has requested a ruling on whether the acquisition of a set of material and human resources, excluding ownership of the land and buildings which are to be leased, constitutes a transfer of a business unit exempt from VAT. The DGT ruled that the transaction is not subject to VAT if the transferred elements allow for the conduct of an autonomous activity, regardless of whether the real estate is provided through a lease agreement.

The question raised

Subjectivity of the described operation to Value Added Tax.

The DGT's ruling

The transfer of a set of elements constituting an autonomous economic unit capable of carrying out an activity by its own means is not subject to VAT. The fact that the real estate necessary for the activity is not transferred, but rather provided through a lease, does not prevent the fulfillment of the non-subjectivity assumption. It must be analyzed whether the structure of production factors allows for the continuity of the economic activity on a lasting basis.

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