Doctrine by topic · DGT Observatory

Turnover Function: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 9 rulings · 2016–2023

Current position

A commercial document fulfills a turnover function and is subject to AJD (Stamp Duty) if it is transferable by endorsement, as occurs with checks made to order or promissory notes without a 'not to order' clause. The absence of a 'not to order' clause at the time of issuance allows for transferability and the accrual of the tax. If a document with a 'not to order' clause is endorsed, it is transformed into a document made to order and becomes subject to taxation.

The DGT's position remains constant in the definition of the turnover function, linking it to the capacity for transfer via endorsement. Throughout the rulings, it has been specified that the 'not to order' clause is the determining element to exclude taxation and that endorsement can transform the nature of the document for tax purposes.

Turning points

  1. V1258-19

    Establishes the distinction between documents that incorporate the credit in an abstract and autonomous manner versus those that only serve to prove the payment of a debt.

  2. V1761-22

    Specifies that a check with a 'not to order' clause that is endorsed is transformed into a document made to order, becoming subject to the tax.

Analysis based on 9 of 9 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

9
V3036-23 21 Nov 2023

Promissory notes without 'not to order' clause are subject to Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
pagaré cambiariofunción de giroactos jurídicos documentadoscláusula no a la ordenendoso TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 33TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 34
Affects CompanyExpat · Non-residentIndividual
V3166-21 22 Dec 2021

Endorsement of a nominative cheque is subject to Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
actos jurídicos documentadosdocumentos mercantilesfunción de giroendososujeto pasivo TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 33TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 34
Affects CompanyExpat · Non-residentIndividual
V2213-21 1 Aug 2021

Endorsement of a nominative cheque is subject to Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
actos jurídicos documentadosdocumentos mercantilesfunción de giroendososujeto pasivo TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 33RITPAJD RD 828/1995
Affects CompanyExpat · Non-residentIndividual

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