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V1726-19 ·9 July 2019 ·consulta-vinculante Medium impact
Tax

Cannot deduct VAT if no economic activity, only holding of assets

A limited liability company asks whether it can deduct VAT on its expenses. The DGT responds that, without carrying out any economic or professional activity and merely holding assets, it has no right to deduction.

In 6 key points

How it affects those involved

Companies that do not engage in economic or professional activities and only hold assets cannot claim VAT deductions.

Lifecycle

2019-07-09PublishedPublished 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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