Purchasing a hot air balloon is subject to the variable rate of AJD

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the taxation of the acquisition of movable assets that require registration, using the sale of a hot air balloon as an example.

What the DGT has ruled

The query sought to determine whether the sale of a hot air balloon, formalized through a public deed, should be taxed at the variable rate of the Stamp Duty (AJD). The administration has ruled that the operation is indeed subject to the variable rate.

This criterion is based on the fact that the operation constitutes a first copy of a deed with a valuable object that is registrable in the Registry of Movable Property, specifically in the Ships and Aircraft Section. Furthermore, the DGT clarifies that, since the operation is subject to VAT, it is excluded from the onerous property transfers modality.

What this means for you

This ruling has a direct impact on both companies and individuals conducting operations of this nature. If you acquire an asset that is registrable in the Registry of Movable Property (such as aircraft or ships) and formalize said purchase through a public deed, you must settle the tax based on the value of the asset.

A fundamental aspect is the location of the payment. The tax must be self-assessed in the Autonomous Community where the Registry in which the acquired asset must be registered is located, regardless of the location of the parties involved.

What you should do

When acquiring registrable movable assets, it is necessary to verify the regulations of the Autonomous Community where the corresponding Registry is located. The correct determination of the variable AJD rate is essential to comply with the tax obligations arising from the formalization of the deed. It is recommended to assess each operation individually to ensure that the settlement is carried out in accordance with current regulations and within the appropriate territorial jurisdiction.