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V3864-15 3 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión del remate

The assignment of the auction proceeds by the executing creditor is subject to VAT

An EU entity inquires about the VAT treatment regarding the acquisition of credit portfolios and the assignment of auction proceeds. The DGT determines that the assignment of the auction proceeds by the mortgage creditor to a third party is subject to VAT and analyzes the taxability of the transfer of the real estate.

The question raised

Question posed: Treatment for Value Added Tax purposes.

The DGT's ruling

If the assignment of the auction proceeds is made in the capacity of assigning the auction to a third party pursuant to the LEC, the transaction by the executing creditor (creditor) to the assignee is subject to VAT. The transfer of the real estate by the owner to the assignee shall be subject to VAT if the transferor is a taxable person and the real estate is part of their assets, and may be exempt depending on the nature of the asset. In the event that the executing creditor is not located in Spain, the reverse charge mechanism shall apply.

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