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V0151-20 21 January 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Deduction of input VAT on goods and services required for professional activity

A computer programmer enquires whether they can deduct VAT on their expenses and how to request a refund of the resulting balance. The DGT rules that deduction is possible provided that the goods and services are used directly and exclusively for the professional activity.

The question raised

The taxpayer seeks to determine whether the Value Added Tax amounts incurred as a result of the acquisition of goods and services necessary for the conduct of their activity are deductible. If so, the method for obtaining a refund of those amounts.

The DGT's ruling

The taxpayer may deduct the tax amounts incurred from the acquisition of goods and services necessary for their activity, provided that the requirements of Law 37/1992 are met. To obtain a refund of the credit balance, they may opt for the general procedure under Article 115 or the procedure under Article 116 of the aforementioned law. The right to deduction requires that the goods or services be used in transactions that would entitle the taxpayer to a deduction if they had been carried out within the territory to which the tax applies.

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