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V0402-20 20 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Conditions for VAT deductibility on the purchase of a computer by a community of property

A community of property leasing an industrial building asks whether it can deduct VAT on a computer it intends to acquire for this activity. The DGT states that the leasing activity is subject to VAT, entitling it to deduction.

The question raised

Whether the Value Added Tax amount incurred in the acquisition of said computer would be deductible.

The DGT's ruling

The community of property holds the status of an entrepreneur when carrying out a business activity of leasing. If the computer is not an investment good, its VAT shall only be deductible if it is assigned directly and exclusively to the business or professional activity. To this end, it must comply with the requirements provided for in the Value Added Tax Act.

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