Transfer of the business (due to sale or death)

Transfer of the business by the business person

 The status of businessman or professional for the purposes of VAT is maintained until the effective cessation of the exercise of the activity occurs, which cannot be understood to have occurred while the liquidation is carried out. of business or professional assets and the sale of assets related to their activity. Therefore, if the effective cessation has not taken place, you must continue to file the VAT self-assessments, and you can request a refund, if applicable, by filing form 303 for the fourth quarter of the year in which you cease the activity. If you are registered in the Monthly Refund Register, you can apply for the refund in the period in which the cessation occurs.

 You must declare the VAT payments accrued as a result of the transmissions or assignments of use to third parties of all or part of the business or professional assets, as well as the transfer of assets from the business assets to the assets private or for the entrepreneur's consumption (self-consumption). The transfer of all business assets or of an autonomous economic unit is an operation not subject to VAT. The acquirer is not required to continue to carry out the same activity as the transferor, but may carry out a different activity, provided that they prove their intention to keep the acquired assets used for the pursuit of a business or professional activity. Nor does it require the transfer of the property where the activity is carried out, if it is leased to the acquirer on a lasting basis.

 You must also present the annual VAT summary , form 390, corresponding to the year of termination. Finally, you must submit the corresponding census declaration (form 036), completing box 150, within one month of the termination. 

Transfer of the business by heir

 On the death of the business person, outstanding tax liabilities are passed on to the heirs, or to the representative of the estate, as long as the estate has not been accepted. If there are goods delivered or services rendered by the deceased business person or professional that are pending invoicing and/or collection, it is the heirs (or estate) who must issue the outstanding invoices.

They will also have the obligation to present the declaration (form 303) corresponding to all the operations that had been carried out until death, being able to deduct the outstanding input VAT payments. The filing shall be made at the Delegation or Administration of the Tax Agency of the deceased's domicile and shall be carried out by the heirs. In addition, they must submit form 390 , annual summary, from January 1 to 30 of the following year. There are exceptions, for example, if the only activity is the rental of urban real estate. The heirs will be required to submit the corresponding census declaration of deregistration resulting from the death of the deceased within six months of the death. The declaration shall contain information on the identification of the successors. If the investment goods used in the activity were still within the deduction adjustment period (4 years after purchase; 9 years for land or buildings), for the transmission to the heirs they must carry out a single regularization for the time of said period that remains to elapse. If all the business assets are transferred as an autonomous economic unit , the operation is not subject to VAT, and the acquirer will be subrogated to the position of the transferor for the purposes of continuing to practice regularization over time. that remains. However, the transfer of a property by a lessor who does not have a business organizational structure , is subject to VAT , without prejudice to the exemption that may be applicable and, where appropriate, the waiver thereof.

Transfer of business

 The transfer of a business premises is not subject to VAT if it is transferred with a set of elements that constitute an autonomous economic unit in the transferor capable of carrying out a business or professional activity by its own means (furniture, stock, client portfolio, staff, etc.). Otherwise, the transfer is a supply of services subject to VAT at 21%. The retailer in Surcharge of equivalence will pass on the tax, but will not have to settle and pay it.