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V2542-22 ·13 December 2022 ·consulta-vinculante Medium impact
Tax

Foundation consultancy activities may be subject to Corporation Tax and create a separate VAT sector

An educational foundation has enquired whether conducting consultancy and advisory activities affects its VAT exemption and its Corporation Tax status. The DGT has ruled that such activities could be subject to Corporation Tax and, for VAT purposes, would constitute a separate sector of activity.

In 6 key points

How it affects those involved

Foundations engaging in commercial activities must carefully assess the tax implications, as these activities may trigger Corporation Tax liabilities and prevent the recovery of input VAT through the creation of a separate VAT sector.

Lifecycle

2022-12-13PublishedPublished 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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