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V0176-26 ·30 January 2026 ·consulta-vinculante Low impact
Tax

Foundation must apply sectoral deduction regime if carrying out activities with different deduction rights

A foundation organising theatre festivals asks about its status as a business entity and its right to VAT deduction. The DGT determines it is a business entity and that, as it carries out taxable, exempt and other activities giving rise to deduction rights, it must separate its activities into distinct sectors.

In 6 key points

How it affects those involved

Foundations carrying out mixed activities must classify them into separate sectors to comply with VAT deduction rules.

Lifecycle

2026-01-30PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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