Skip to content
Back to index
V0749-19 3 April 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

VAT on homeowners' association expenses may be deductible if invoicing requirements are met

A company enquired whether it could deduct VAT from the service charge contributions of the homeowners' association of which it is a member. The DGT ruled that this is possible if the invoice provides a breakdown of the proportional share or via an alternative method based on European case law.

The question raised

Deductibility of the portion of the Value Added Tax amounts charged to the homeowners' association that correspond to the consulting company as a member of the association.

The DGT's ruling

Business owners may deduct VAT if the invoice specifies, distinctly and separately, the portion of the taxable base and the amount charged to each owner. Alternatively, according to the CJEU case law, a business owner may deduct the amounts incurred through a duplicate invoice issued in the name of the homeowners' association, even if the breakdown is not provided, by proving their percentage with other documents. This alternative only applies if the homeowners' association does not have the status of a business or professional.

Book your free first meeting