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V0058-16 12 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

Nautical club fees cannot be deducted if the vessel is also used as a residence

A tax advisor inquired whether VAT could be deducted on fees paid to a nautical club where a vessel is moored and used as both a residence and an office. The Directorate General for Taxes (DGT) ruled that deduction is not permitted because the service is not directly and exclusively related to professional activity.

The question raised

Deductibility of the VAT amounts charged by the nautical club.

The DGT's ruling

The amounts incurred for the acquisition of goods or services are only deductible if they are used in the conduct of the business activity and are transactions subject to tax and not exempt. Amounts for goods or services that are not directly and exclusively used for professional activity cannot be deducted, as is the case with goods used simultaneously for business purposes and private needs. In this case, as the vessel serves as both a residence and an office, the requirement of exclusive use is not met.

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