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V1401-18 ·28 May 2018 ·consulta-vinculante Medium impact
Tax

VAT pending from an absorbed entity may be deducted following a tax-neutral merger

A company enquired whether it could deduct outstanding VAT instalments from an entity absorbed during a tax-neutral merger, while being subject to pro rata rules. The DGT ruled that the absorbing entity subrogates into the right to deduction and must apply its own pro rata ratio.

In 6 key points

How it affects those involved

This ruling clarifies the continuity of VAT deduction rights during mergers, confirming that the absorbing entity inherits the deduction rights but must apply its own pro rata rules for subsequent deductions.

Lifecycle

2018-05-28PublishedPublished 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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