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V0475-17 23 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de bienes

Joint ownership sharing professional expenses is a taxable person for VAT purposes

A professional has enquired whether a joint ownership (comunidad de bienes) established to share office expenses is subject to VAT. The DGT has ruled that the joint ownership carries out taxable activities by contracting goods and 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 acting in its own name to contract goods and services (such as rent, utilities, or cleaning) for the purpose of allocating expenses among its members, carries out operations subject to VAT. Therefore, the community is a taxable person for the tax and must charge VAT to its members by means of an invoice. The charged tax shall be deductible for the members if they meet the legal requirements.

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