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V1553-22 ·28 June 2022 ·consulta-vinculante Medium impact
Tax

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A French subsidiary in Spain asks whether it can deduct VAT on its expenses and how. The DGT responds that if the subsidiary does not bear the economic risk of the activity but the parent company does, it is not an independent tax liable entity, and costs must be borne by the parent.

In 6 key points

How it affects those involved

Subsidiaries not bearing economic risk cannot deduct VAT and must bear costs through the parent company.

Lifecycle

2022-06-28PublishedPublished 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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