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V0949-16 ·10 March 2016 ·consulta-vinculante Medium impact
Tax

One cannot act as a VAT-registered entrepreneur to deduct tax on a personal residence

A taxpayer inquired whether they could register as an occasional entrepreneur to reclaim VAT on the construction of a home for their own use. The Directorate-General for Taxes (DGT) ruled that, as the property is not intended for sale, the individual acts as a final consumer and is therefore ineligible to deduct the tax.

In 6 key points

How it affects those involved

This ruling clarifies that personal residential construction projects do not qualify for VAT deductions, even if the individual attempts to register as an occasional entrepreneur, as the intent is personal use rather than commercial activity.

Lifecycle

2016-03-10PublishedPublished 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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