Frequently asked questions raised in this chapter
Taxation by VAT or by the concept of onerous property transfers of the Tax on Property Transfers and Documented Legal Acts of the following operations:
1. A businessman sells old furniture for renovation acquired 8 years ago.
The delivery is taxed by Value Added Tax when made by a businessman in the development of his activity.
2. What if the seller is a teaching center?
We are faced with a delivery of goods that is not subject to either of the two taxes:
There is no tax on property transfers because it is carried out by a businessman.
It is not taxed by VAT because it is one of the operations declared exempt by the VAT Law, as the goods have been used in exempt operations that do not generate the right to deduct the input VAT (article 20.One.24.º of the VAT Law). VAT).
3. What if a businessman who is not a real estate developer sells a flat to an individual for housing?
The delivery is taxed, by exception, for property transfers:
It is not taxed by VAT because it is one of the operations declared exempt by the VAT Law as it is a second or subsequent delivery of buildings.
It is taxed under the concept of onerous property transfers, although it is carried out by a businessman.
4. Purchasing a used typewriter in a store or directly from an individual. What tax must be paid?
If purchased in a store, VAT must be paid to the merchant.
If purchased from an individual, the Onerous Property Transfer Tax must be paid.
5. How does the contribution of machinery affect a business activity carried out by a partner in a company, receiving the corresponding shares in exchange?
The delivery of the machinery is subject to Value Added Tax as the taxpayer is a businessman and forms part of his business assets.
If applicable, you will also be taxed under the concept of corporate operations of the Tax on Property Transfers and Documented Legal Acts, if there is the constitution or increase of capital or the contribution of partners to replace losses.