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V5445-26 ·6 August 2026 ·consulta-vinculante Medium impact
Tax

VAT paid on urbanisation works is deductible if intended for a taxable activity

A natural person owning land being urbanised through a Compensation Board has asked whether the VAT on the works can be deducted. The DGT has ruled that, as there is an intention to sell the resulting plots (urbaniser activity), the VAT amounts are deductible provided that the intention to use them for said business activity is demonstrated.

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Lifecycle

2026-08-06PublishedPublished 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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