Courts again check the municipal value added tax

Courts again check the municipal value added tax

A judgment also annuls this tax for cases in which there were profits in the sale, while the Congress already processed the tax reform

  The courts have once again put the municipal surplus tax in check. Last May the Constitutional Court considered that the tax should not be applied to cases in which there were losses in the sale of the property and annulled several articles. However, now a ruling of the Superior Court of Justice of Navarra has ruled that this tax should not be applied when there have been benefits in the transmission. Of course, qualifies that adheres to those cases settled after the annulment of the Constitutional or earlier in what taxpayers have open a claim.

We must bear in mind that this new ruling affects Navarre's statutory regulations, which were also annulled by the Constitutional as the state. However, it opens a path that could be replicated in other cases affected by the general regulations. That is to say, that the case could force the Constitutional to have to pronounce on this concrete aspect.

Meanwhile, Congress is already processing the reform of this tax presented by the PP. The measure contemplates that the lien is not applied when there have been no gains in the sale of the property. For this, it will be enough to show the price of the purchase set in the deeds with that of the sale to verify the difference. Of course, the documents must be verified by the Tax Agency.