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Practical Handbook VAT 2022

General rule

Both taxes are levied on the transfer of property or rights.The VAT applies when the transferor is a businessman or professional, and the concept "Transmisiones Patrimoniales Onerosas" applies when the transferor is a private individual.


A second-hand car bought from a dealer will be subject to VAT, which must be passed on by the dealer to the buyer.On the other hand, if the purchase is made from a private individual, the tax to be paid by the purchaser is the Transfer Tax and Stamp Duty (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados).

A fundamental difference between the two taxes is the deductibility of VAT when it is borne by an entrepreneur.While the amounts paid under the concept of "Transfer of Property for consideration" constitute a cost for the entrepreneur, VAT is not, since it can be deducted in the corresponding self-assessment.

As a general rule, both taxes are incompatible so that, in principle, transactions carried out by entrepreneurs and professionals in the exercise of their business or professional activity are not subject to the concept of "Transmisiones Patrimoniales Onerosas" of the Transfer Tax and Stamp Duty, but to VAT.