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A query was raised regarding whether two Spanish entities, both 100% owned by the same French entity, could benefit from the VAT group of entities regime. The Directorate General for Taxes (DGT) ruled that the regulations do not provide for this regime for entities whose parent company is not established within the tax territory.
This ruling limits the ability of Spanish subsidiaries of foreign groups to benefit from VAT grouping, as the parent company must be established in Spain to qualify.
The tax team reviews your specific situation.
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