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V0458-20 26 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Business spouse can deduct VAT on commercial property if fully used in business activity

A married professional in a community property regime asks whether they can deduct VAT on the purchase of a commercial property for their business. The DGT responds that a spouse with entrepreneurial status may deduct the VAT if the property is fully used in their business activity.

The question raised

Whether the amounts incurred for Value Added Tax are deductible.

The DGT's ruling

The spouse who holds the status of entrepreneur or professional may deduct the amounts incurred for the acquisition of a premises if it is used entirely for the development of their business or professional activity. The deduction shall be subject to the limits and requirements of the VAT Law, including the necessity that the goods be used in transactions that give rise to a right to deduction. In the event of concurrent transactions with and without a right to deduction, the pro rata rule shall apply.

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