VAT Charged in Deed Confirms Tacit Waiver of Real Estate Exemption

• The TEAC (March 24, 2026) reaffirmed that tacit waiver of VAT exemption can be valid in real estate transactions, following its 2019 ruling.
• In this case, the property sale was not a “rehabilitation” and was therefore, in principle, a VAT-exempt second transfer subject to transfer tax (TPO).
• However, because the deed stated that VAT was charged and the buyer was a taxable business with deduction rights, the TEAC held that the VAT exemption was waived, so the sale was subject to VAT and not TPO.
• The TEAC also clarified that in such cases the buyer is the VAT taxpayer under reverse charge, meaning the seller’s VAT charge was improper and that VAT is not deductible by the buyer as directly charged VAT.
• The ruling helps avoid TPO in cases of misclassification, while noting that the correct mechanism should have been self-assessment and deduction by the buyer.

Source: allyon-etl.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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