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VAT practical manual 2021.

E) Non-subject operations

They will not be subject to the tax:

  1. The transfers of a set of corporeal or incorporeal elements that form part of the business or professional assets in the following cases:

    1. When the following conditions are met:

      • The transmitted elements constitute an autonomous economic unit in the transferor capable of developing a business or professional activity through its own means.

      • The acquirer must prove the intention to maintain the use of the acquired elements for the development of a business or professional activity, whether the same or different from the activity carried out by the transferor.


      The transfer of business assets en bloc, except for an industrial warehouse that is held as an investment, is not subject to tax because it constitutes an autonomous economic unit in the transferor.

    2. The following transmissions are excluded from non-restraint:

      • The mere transfers of goods or rights.

      • Those whose purpose is the mere transfer of goods, carried out by lessors and by businessmen or professionals who exclusively have said condition in accordance with article 5.Uno.c) of the LIVA .

      • Those carried out by those who have the status of businessmen or professionals exclusively for the occasional performance of the operations referred to in article 5.Uno.d) of the LIVA (occasional promoters).

      The purchasers of the assets will be subrogated, with respect to said assets, in the position of the transferor in relation to the exemption of real estate deliveries and the deduction regime.

      If the transferred assets or rights are subsequently disaffected from the activity that determines the non-subjection, the disaffection will be subject to the tax.

      For these purposes, "mere transfer of goods or rights" will be understood as:

      The transmission of these when it is not accompanied by an organizational structure of material and human production factors, or one of them, that allows it to be considered constitutive of an autonomous economic unit.

  2. Free deliveries of samples of goods without estimable commercial value and the provision of free demonstration services for promotional purposes.

    For these purposes, it is immaterial whether these are deliveries to individuals or to other businessmen or professionals.

  3. Deliveries without compensation of printed matter or advertising objects.

    The name of the businessman or professional to whom the advertising refers must clearly appear. Advertising prints have no quantitative limit, but deliveries of advertising objects to the same client must not cost more than 200 euros during the calendar year, unless it is for free redistribution.

  4. Services provided by natural persons under a labor or administrative dependency regime. This includes services provided under a dependency regime derived from employment relationships of an ordinary or special nature.

  5. The services provided to cooperatives by their work partners.

  6. Self-consumption of goods and services if the right to fully or partially deduct the VAT borne in their acquisition was not attributed.

  7. The deliveries of goods and services carried out directly by the Public Administrations, as well as the entities referred to in sections C) and D) of number 8 of article 7 of the LIVA, without consideration or through consideration of a tax nature, provided that they are not certain operations included in the Law that are subject to the Tax in any case, as occurs with telecommunications, transportation, operation of fairs, travel agencies, among others.

    The following are considered "Public Administrations":

    • The General Administration of the State, the Administrations of the Autonomous Communities and the Entities that make up the Local Administration.

    • The managing entities and common services of Social Security.

    • Autonomous organizations, Public Universities and State Agencies.

    • Any public law entity with its own legal personality, dependent on the previous ones that, with functional independence or with a special autonomy recognized by the Law, are assigned external regulation or control functions over a certain sector or activity.

    State public business entities and similar organizations dependent on the Autonomous Communities and local entities will not be considered Public Administrations .

    The services provided by virtue of the orders executed by the entities, organizations and entities of the public sector that they hold, will not be subject to the Tax , in accordance with the provisions of article 32 of the Law of Public Sector Contracts, the condition of the personified means of the contracting authority that has ordered the order, in the terms established in the aforementioned article 32.

    Likewise, the services provided by any entities, organizations or entities of the public sector will not be subject to the Tax , in the terms referred to in article 3.1 of the Public Sector Contracts Law, in favor of the Public Administrations on which they depend or another wholly dependent on them, when said Public Administrations hold full ownership of them.

    The non-consideration as operations subject to the tax mentioned in the two previous paragraphs will also be applicable to the services provided between the entities to which they refer, wholly dependent on the same Public Administration.

    In any case, the deliveries of goods and services that the Administrations, entities, organizations and entities of the public sector carry out in the exercise of the activities listed below will be subject to the Tax :

    • Telecommunications

    • Distribution of water, gas, heat, cold, electrical energy and other forms of energy.

    • Transportation of people and goods.

    • Port and airport services and operation of railway infrastructure including, for these purposes, concessions and authorizations excepted from non-subjection of the Tax by number 9 below.

    • Obtaining, manufacturing or transforming products for subsequent transmission.

    • Intervention on agricultural products aimed at regulating the market for these products.

    • Operation of fairs and commercial exhibitions.

    • Storage and deposit.

    • Those of commercial advertising offices.

    • Operation of canteens and canteens of companies, commissaries, cooperatives and similar establishments.

    • Those of travel agencies.

    • The commercial or commercial relations of public radio and television entities, including those related to the transfer of the use of their facilities.

    • Those from the slaughterhouse.


    A City Council that provides garbage collection services, charging a fee, is performing a service not subject to VAT.

    A City Council that operates a trade fair carries out a subject service, since said service is included among the operations that the Law expressly mentions as subject.

  8. Administrative concessions and authorizations, except those whose purpose is the transfer of real estate or facilities in airports; the transfer of the right to use the public port domain or railway infrastructure and the authorizations for the provision of services to the public and for the development of commercial or industrial activities in the port area.

  9. The provision of free services that are obligatory for the taxpayer by virtue of legal regulations or collective agreements.


    The services provided by lawyers and attorneys in cases in which they are appointed ex officio to provide legal assistance to the detainee, are not subject to tax as they are free services obligatory for the taxable person by virtue of legal regulations, since The amounts that, charged to the State Budget, are assigned to these professionals for the provision of said services do not have the character of remuneration or compensation for them.

  10. The operations carried out by irrigation communities for the management and use of water.

  11. Deliveries of money as consideration or payment.