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V0909-14 1 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · derecho a la deducción

IVA can be deducted for the purchase and costs of a commercial property intended for rental

The consultant asks whether IVA can be deducted on the purchase of a commercial property and future rental expenses. The DGT responds that, as a landlord, being an entrepreneur, IVA can be deducted based on the foreseeable use of the property.

The question raised

1st Deductibility of VAT paid on the acquisition of the premises and on future expenses that may arise.

The DGT's ruling

The lessor of goods is considered a taxable person and their operations are subject to VAT. The right to deduction is determined according to the foreseeable use of the acquired goods and services. Since a commercial premises has the foreseeable use of a rental that will be a taxable operation, it is possible to deduct the input tax incurred for expenses related to the activity.

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