Skip to content
V2193-23 ·26 July 2023 ·consulta-vinculante Medium impact
Tax

Price-linked subsidies form part of the taxable base and must be included in the calculation of the deduction pro rata

A company performing both taxable and exempt VAT activities seeks clarification on whether a subsidy for technical assistance should be included in its pro rata calculation. The DGT rules that if the subsidy is linked to the price, it constitutes part of the taxable base and must be included in both the numerator and the denominator of the pro rata calculation.

In 6 key points

How it affects those involved

Companies receiving subsidies linked to the price of goods or services must adjust their VAT deduction pro rata, potentially affecting their ability to recover input VAT.

Lifecycle

2023-07-26PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact