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V0810-20 13 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sectores diferenciados

Existence of separate VAT sectors depends on deduction percentage differences and CNAE classification

A taxpayer operating two distinct economic activities (catalogue retail and handicrafts) requested clarification on the application of deduction regimes and pro rata. The DGT stated that the existence of separate sectors depends on whether the deduction percentages for each activity differ by more than 50 percentage points.

The question raised

Deduction regime, with or without the application of differentiated sectors, option to tax under the special pro rata or, otherwise, the provisional deduction percentage to be applied.

The DGT's ruling

To determine whether differentiated sectors exist, it must be verified whether the activities belong to different CNAE groups and whether their deduction percentages differ by more than 50 percentage points. If differentiated sectors exist, the deduction regime and the pro rata shall be applied separately to each one. In the absence of differentiated sectors, the rules shall apply to the set of activities. The special pro rata shall be applicable by option or when the deductible amounts exceed those resulting from the general pro rata by 10% or more.

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