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V5099-16 24 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · renuncia a la exención

Exemption from VAT on the transfer of commercial premises may be waived if the purchaser is entitled to deduction

The inquirer asks whether the sale of a previously leased commercial premises can be subject to VAT through a waiver of exemption. The DGT rules that if the property has been used for more than two years, the transfer is exempt; however, the seller may waive this exemption provided the buyer is a taxable person entitled to VAT deduction.

The question raised

Question raised: Subjectivity to Tax and exemption. Possibility of waiving the exemption.

The DGT's ruling

The transfer of a premises used for leasing activities is a transaction subject to VAT. If the property has been used uninterruptedly by its owner or tenants for two years or more, the delivery constitutes a second delivery of a building and is exempt. However, the taxable person may waive this exemption if the acquirer is a taxable person with the right to full or partial deduction. In this case, the acquirer shall be the taxable person for the transaction and must include the tax charged and the tax borne in their tax return.

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