- The TEAC ruled that, for VAT purposes, a mere statement in the deed that an acquired building will be rehabilitated or demolished is not enough to disapply the exemption for second and later supplies of buildings.
- The tax authority must have objective evidence existing at the time of transfer showing the buyer’s actual intention to rehabilitate or demolish the property.
- The building’s ruined condition and the fact that the works were not ultimately carried out do not, by themselves, prove that the sale was taxable rather than VAT-exempt.
- The TEAC partially upheld the buyer’s claim and annulled the denial of the VAT correction request, but ordered the administration to verify whether the refund conditions are met before repaying the VAT charged.
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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