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V1384-23 23 May 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de bienes

Possibility of deducting VAT from invoices issued individually by co-owners of a premises

A company rents a premises owned by three siblings who issue individual invoices for their respective shares of the property. The DGT determines that if the co-owners act as individual entrepreneurs rather than as a community of property, the company may deduct VAT from these invoices, provided all legal requirements are met.

The question raised

Possibility of deducting Value Added Tax amounts stated in the invoices received from each of the owners.

The DGT's ruling

For a community of property to be a taxable person for VAT purposes, there must be a joint organization of means and a joint assumption of risk and venture. If the co-owners issue individual invoices, it is inferred that the operation refers to the members and not to the community, with each being an individual entrepreneur. In this case, the company may deduct VAT if it holds the original invoice that complies with legal and regulatory requirements.

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