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Practical Handbook VAT 2022

E) Non-subject operations

They shall not be subject to the tax:

  1. Transfers of a set of tangible or intangible assets forming part of the business or professional assets in the following cases:

    1. When the following conditions are met:

      • The items transferred constitute an autonomous economic unit in the transferor capable of carrying on a business or professional activity by its own means.

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


      The transfer of business assets en bloc, with the exception of an industrial building which is held as an investment, is not subject to tax as it constitutes an autonomous economic unit in the transferor.

    2. The following transfers are excluded from non-taxation:

      • Mere transfers of goods or rights.

      • Those whose object is the mere transfer of goods, carried out by lessors and by businessmen or professionals who exclusively have this status in accordance with Article 5.1.c) of the LIVA.

      • Those carried out by those who have the status of entrepreneurs or professionals exclusively for the occasional performance of the operations referred to in Article 5.1.d) of the LIVA (occasional promoters).

      The purchasers of the assets shall be subrogated, in respect of those assets, to the position of the transferor in relation to the exemption of supplies of real estate and the system of deductions.

      If the assets or rights transferred are subsequently withdrawn from the activity that determines the non-taxation, the withdrawal will be subject to tax.

      For these purposes, "mere transfer of goods or rights" shall mean "mere transfer of goods or rights":

      The transfer of the latter where it is not accompanied by an organisational structure of material and human factors of production, or one of them, which allows it to be considered as constituting an autonomous economic unit.

  2. The free supply of samples of goods of no appreciable commercial value and the provision of demonstration services free of charge for promotional purposes.

    For these purposes, it makes no difference whether the supplies are to private individuals or to other traders or professionals.

  3. The supply without consideration of printed matter or objects of an advertising nature.

    The name of the trader or professional to whom the advertisement refers must be clearly indicated.There is no quantitative limit for printed advertising material, but deliveries of advertising items to the same customer must not cost more than 200 euros during the calendar year, unless it is for redistribution free of charge.

  4. Services provided by natural persons under a labour or administrative dependence regime.This includes services rendered in a dependency regime deriving from ordinary or special employment relationships.

  5. Services provided to cooperatives by their worker-members.

  6. Self-consumption of goods and services if the right to deduct all or part of the VAT incurred on the purchase of the goods and services was not attributed.

  7. The supply 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 for consideration of a tax nature, provided that these are not certain transactions included in the Law which are subject to tax in all cases, such as telecommunications, transport, trade fairs, travel agencies, among others.

    " Public Administrations " :

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

    • The managing bodies and the common services of the Social Security.

    • Autonomous bodies, Public Universities and State Agencies.

    • Any public law entity with its own legal personality, dependent on the above which, with functional independence or with a special autonomy recognised by law, has been attributed regulatory or control functions of an external nature over a specific sector or activity.

    State public business entities and similar bodies dependent on the Autonomous Communities and local entities shall not be considered as Public Administrations .

    Services rendered by virtue of orders carried out by public sector bodies, agencies and entities that have, in accordance with the provisions of Article 32 of the Public Sector Contracts Act, the status of a personified own means of the contracting authority that has ordered the order, under the terms established in the aforementioned Article 32, shall not be subject to the tax .

    Likewise, will not be subject to the tax on services rendered by any public sector entities, bodies or organisations, under the terms referred to in Article 3.1 of the Public Sector Contracts Act, in favour of the Public Administrations on which they depend or another wholly dependent on these, when these Public Administrations hold full ownership of the same.

    The non-consideration as taxable transactions referred to in the two preceding paragraphs shall also apply to services rendered between the entities to which they refer, which are wholly dependent on the same public administration.

    In any case, the supplies of goods and services that public sector administrations, bodies, agencies and entities carry out in the exercise of the activities listed below will be subject to the tax :

    • Telecommunications

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

    • Transport of persons and goods.

    • Port and airport services and operation of railway infrastructures, including, for these purposes, concessions and authorisations exempted from the non-taxation of the tax by letter h) below.

    • Obtaining, manufacturing or processing products for further transmission.

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

    • Operation of trade fairs and exhibitions of a commercial nature.

    • Storage and warehousing.

    • Those of commercial advertising offices.

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

    • Those of travel agencies.

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

    • Slaughterhouses.


    A municipality providing waste collection services, charging a fee, is performing a service that is not subject to VAT.

    A municipality operating a trade fair performs a taxable service, as such a service is included among the operations expressly mentioned as taxable under the Law.

  8. Administrative concessions and authorisations, with the exception of those for the transfer of buildings or installations at airports;the transfer of the right to use the port public domain or railway infrastructures and authorisations for the provision of services to the public and for the development of commercial or industrial activities in the port area.

  9. The supply of services free of charge which are compulsory for the taxable person by virtue of legal rules or collective agreements.


    The services provided by lawyers and solicitors in cases where they are appointed ex officio to provide legal assistance to detainees are not subject to tax as they are services provided free of charge which are compulsory for the taxable person by virtue of legal rules, since the amounts which, charged to the State Budget, are allocated to these professionals for the provision of such services are not in the nature of remuneration or compensation for them.

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

  11. Las entregas de dinero a título de contraprestación o pago.