Transmission of Assets Excluding Certain Contracts and Accounts (TOGC)

• A company is transmitting machinery, equipment, and employees to another company for the purpose of conducting business activities.
• Contracts related to project execution and leasing are also being transmitted.
• However, certain contracts being developed for third parties and accounts receivable or payable related to those contracts will not be included.
• The transmission is not subject to VAT as it includes the necessary organizational structure and factors of production as defined in Article 7.1 of the VAT Law.
• The fact that certain contracts are not being transmitted does not prevent the application of the non-taxable status, as long as human resources and necessary materials are also being transferred, creating an economically independent unit.

Source: www2.agenciatributaria.gob.es

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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