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V4891-16 ·11 November 2016 ·consulta-vinculante Medium impact
Tax

A company holding assets solely for the personal use of its partners is neither a business nor a professional for VAT purposes

A query was raised regarding whether a company that owns transport assets for the exclusive use of a partner and their family carries out activities subject to VAT. The DGT ruled that, as the company does not intervene in the market or carry out business activities, it does not hold the status of a business or professional.

In 6 key points

How it affects those involved

This ruling clarifies that companies acting merely as holding vehicles for personal assets do not qualify for VAT status, preventing the deduction of input tax on such assets.

Lifecycle

2016-11-11PublishedPublished 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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