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V0961-24 30 April 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción

The deduction of VAT on the acquisition of works of art depends on the status of entrepreneur and the intention of use in the activity

The DGT confirms that VAT deduction is possible if the intent to use artworks in business activity is proven and legal requirements are met.

The question raised

Whether the Value Added Tax amounts incurred in the acquisition of said works of art shall be deductible prior to the transfer thereof.

The DGT's ruling

The VAT amounts incurred from the acquisition of works of art are deductible if they are directly and exclusively allocated to the business activity. If the acquisition occurs prior to the commencement of the activity, the intention to allocate them to said activity must be proven through objective elements. If the company opts for the special regime for works of art, it may not deduct the amounts incurred from the acquisition of the assets it transfers under said regime.

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