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V0194-15 ·20 January 2015 ·consulta-vinculante Medium impact
Tax

Foundations may deduct VAT on profitable activities using an apportionment method

A foundation has enquired whether it can deduct input VAT while conducting both non-profit activities (donations) and economic activities (profitable). The Directorate General for Taxes (DGT) rules that the entity shall hold the status of a taxable person only for its profitable activities and explains how to apply the deduction.

In 6 key points

How it affects those involved

This ruling clarifies the VAT status of non-profit entities, establishing that they are only considered taxable persons regarding their profitable operations and defining the mechanism for VAT recovery through apportionment.

Lifecycle

2015-01-20PublishedPublished 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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