The Administrative Court of the Madrid Supreme Court of Justice has passed a final judgment last 30th April 2015 by which it has endorsed the arguments of the Real Estate Fund Bankia Inmobiliario FII, advised by Thomas de Carranza Abogados, considering that for the porpoise of exemption the effects of the Vat exemption on art. 20.1.22 of the VAT Act, the definition of “building conversion” includes, not only those that are affecting works in structures, facades, roofs and similar, but also, considering its complex character, the works as a whole and to determine if the principal object of the works is the conversion of the building or, on the contrary, this should be consider as secondary in relation with the total works made.

Also, the Court, has considered the final assessment of the works certify by the Colleague of Architects as a reference at the time of fixing the real economic value of the works undertake it (as opposed to the estimate made by the tax office appointed architect ). The rejection of this appeal would have meant the submission of the purchase and sale transaction to the Property Conveyance Tax (and not to VAT as the parties correctly submitted).