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V1353-20 12 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cv cerrada

IVA deductions allowed for a closed Dutch BV acting as a passive taxpayer

A Dutch closed company asks whether it can deduct VAT on property acquisition and promotion for rental. The DGT confirms that the company may be considered a passive taxpayer and deduct VAT if it operates as a trader with a permanent establishment and its activities generate a deduction right.

The question raised

Whether the Value Added Tax installments incurred by the taxpayer in the acquisition and promotion of real estate, as well as other goods and services within the framework of its real estate development activity for lease carried out in the territory subject to the tax, are deductible.

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