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V2861-18 ·5 November 2018 ·consulta-vinculante Medium impact
Tax

Rental of commercial premises and residential properties constitutes a single differentiated sector for VAT pro rata application

The taxpayer asks whether the pro rata rule must be applied to deduct VAT on a property intended for residential rental. The DGT rules that the rental of commercial premises and residential properties belong to the same differentiated sector of activity.

In 6 key points

How it affects those involved

This ruling clarifies that VAT deduction for property owners cannot be split between commercial and residential activities, as they are treated as a single sector for pro rata purposes.

Lifecycle

2018-11-05PublishedPublished 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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