E) Non-subject operations

The following will not be subject to tax:

The transfer 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 transferred items constitute an autonomous economic unit in the transferor capable of developing a business or professional activity by its own means.
  - The purchaser must prove the intention to maintain the allocation of the acquired elements to the development of a business or professional activity, whether equal to or different from the activity carried out by the transferor.
  Example:
  
  The transfer of business assets in bulk, except for an industrial warehouse that is considered an investment, is not subject to tax because it constitutes an autonomous economic unit in the transferor.
2. The following transmissions are excluded from the exemption:
  - The mere transfers of assets or rights.
  - Those whose purpose is the mere transfer of goods, carried out by lessors and by businessmen or professionals who exclusively have such status in accordance with article 5.One.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.One.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 from real estate deliveries and the deduction regime.
  
  If the transferred assets or rights are subsequently removed from the activity that determines their non-taxation, the removal will be subject to tax.
  
  For these purposes, the term "mere transfer of assets or rights" shall mean:
  
  The transmission of these when not accompanied by an organizational structure of material and human production factors, or one of them, that allows it to be considered as constituting an autonomous economic unit.
Free delivery of samples of goods of no appreciable commercial value and provision of free demonstration services for promotional purposes.

For these purposes, it is irrelevant whether the deliveries are to individuals or to other businessmen or professionals.
Deliveries of printed materials or advertising objects without compensation.

The name of the business owner or professional to whom the advertisement refers must be clearly stated. There is no quantitative limit on printed advertising, but the delivery of advertising items to a single client must not cost more than 200 euros during the calendar year, unless it is for free redistribution.
Services provided by individuals under a regime of employment or administrative dependency. This includes services provided under a dependency regime derived from ordinary or special employment relationships.
Services provided to cooperatives by their working partners.
Self-consumption of goods and services if the right to fully or partially deduct the VAT borne in their acquisition was not attributed.
The delivery of goods and provision of services carried out directly by Public Administrations, as well as the entities referred to in sections C) and D) of number 8 of article 7 of 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 is the case with telecommunications, transport, operation of fairs, travel agencies, among others.
They 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 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 recognized by law, has been assigned regulatory or control functions of an external nature over a certain sector or activity.
## State-owned public business entities and similar bodies dependent on Autonomous Communities and local entities will not be considered Public Administrations.

Services provided under orders executed by public sector entities, agencies and entities that hold, in accordance with the provisions of article 32 of the Public Sector Contracts Law, the status of personified own means of the contracting authority that ordered the order, in the terms established in the aforementioned article 32, will not be subject to the Tax.

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

The fact that they are not considered as transactions subject to the tax mentioned in the two preceding paragraphs will also apply to services provided between the entities to which they refer, which are entirely dependent on the same Public Administration.

In any case, the deliveries of goods and services provided by the Administrations, entities, organizations and entities of the public sector in the exercise of the activities listed below will be subject to Tax :
- Telecommunications
- Distribution of water, gas, heat, cold, electricity and other energy sources.
- Transportation of people and goods.
- Port and airport services and railway infrastructure management services, including, for these purposes, the concessions and authorisations exempted from the tax by letter h) below.
- Obtaining, manufacturing or transforming products for their subsequent 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 dining rooms in companies, grocery stores, cooperatives and similar establishments.
- Those of travel agencies.
- The commercial or mercantile matters of public radio and television entities, including those relating to the transfer of use of their facilities.
- Those of the slaughterhouse.
Examples:

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

A City Council that operates a trade fair provides a taxable service, since said service is included among the operations that the Law expressly mentions as taxable.
Administrative concessions and authorizations, except those aimed at the transfer of real estate or facilities at airports; the transfer of the right to use the public port domain or railway infrastructure and the authorisations for the provision of services to the public and for the development of commercial or industrial activities in the port area.
The provision of services free of charge that are obligatory for the taxpayer by virtue of legal regulations or collective agreements.

Example:

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 free services that are mandatory for the taxpayer by virtue of legal regulations, since the amounts allocated to these professionals from the State Budget for the provision of said services are not in the nature of remuneration or compensation for them.
Operations carried out by irrigation communities for the management and use of water.
The delivery of money as consideration or payment.