Deliveries of investment goods during the regularisation period
In the event that investment assets are transferred during the regularization period, a single regularization is made for the years of the regularization period that remain to elapse, applying the following rules:
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Delivery subject to and not exempt from: It is considered that the asset was used only in operations with the right to deduct during the year of sale and the remaining years until the expiration of the regularization period (percentage of 100 percent).
Deduction limit: the fee accrued for the delivery of the goods.
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Exempt or non-taxable delivery: It is considered that the asset was used only in operations without the right to deduct during the entire year of sale and the remaining years until the expiration of the regularization period (percentage of 0 percent).
However, the first rule will apply to the exempt or non-taxable deliveries that give rise to the right to deduction .
Limit on deductions: the rate that would result from applying the current tax rate applicable to goods of the same nature to the domestic value of the goods exported or sent to another Member State.
Example:
A building acquired in “n-1” for 2,000,000 euros, plus 420,000 euros of VAT , is sold in “n” for 1,000,000 euros.
The final deduction percentage for “n-1” was 50%.
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If the delivery is subject to and not exempt by waiver of the exemption:
VAT charged on the sale: 1,000,000 x 21% = 210,000 euros
Regularization:
Additional deduction of 189,000 euros
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If the delivery is subject but exempt:
VAT charged on the sale: 1,000,000 x 21% = 210,000 euros
Regularization:
Supplementary income of 189,000 euros
Note to example:
(*) It is divided by 10, because when dealing with a building the regularization period is 10 years, and it is multiplied by 9, because these are the years remaining until the regularization period ends, counting for these purposes the year in which the transfer occurs.