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V0229-18 1 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de bienes

Professional joint ventures must charge VAT to their members for services provided

A joint venture formed by professionals to share common expenses has requested clarification on whether it must account for VAT. The DGT has ruled that the joint venture carries out a professional activity subject to tax when it contracts services in its own name for its members.

The question raised

The taxation by Value Added Tax of the activity of the aforementioned community is raised.

The DGT's ruling

The community of property carries out operations subject to VAT by providing services in its own name to its members for the purpose of sharing expenses. By acting in this manner, the community is considered a taxable person for the tax. It must charge VAT on invoices to the members and comply with the obligations of a taxable person. The VAT charged shall be deductible for the members if they meet the legal requirements.

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