Skip to content
Back to index
V0592-20 16 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de propietarios

Business owners within a homeowners' association may deduct VAT under specific conditions

A homeowners' association has enquired whether it can deduct VAT on ancillary services and whether its members can deduct the fees paid to the association. The Directorate General for Taxes (DGT) responds that the association is only a taxable person for specific business activities, such as leasing antennas, and that members may deduct VAT provided that invoicing regulations are met or through the exceptional route of European case law.

The question raised

Possibility of deducting the amounts incurred for these services, preferably by the homeowners' association itself.

The DGT's ruling

The homeowners' association is a final consumer and cannot deduct VAT on maintenance services, except for the activity of leasing common elements. Business members may deduct VAT if the invoice breaks down their proportional share of the tax base and tax. Alternatively, pursuant to CJEU case law, they may deduct VAT by means of a duplicate invoice issued in the name of the association, proving their participation with other documents, provided that the association is not a taxable person.

Book your free first meeting