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V1252-19 ·3 June 2019 ·consulta-vinculante Medium impact
Tax

Waiver of VAT exemption on property purchases possible for entrepreneurs entitled to deduction

An individual has requested clarification on the requirements for waiving the VAT exemption when purchasing a second-hand property intended for rental. The Directorate-General for Tax (DGT) explains that a waiver is permissible if the purchaser is an entrepreneur entitled to tax deductions and if the decision is formally communicated to the seller.

In 6 key points

How it affects those involved

This ruling clarifies the procedural requirements for entrepreneurs looking to opt into the VAT regime for property acquisitions, potentially allowing them to recover VAT on purchases that would otherwise be exempt.

Lifecycle

2019-06-03PublishedPublished 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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