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V1637-23 9 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

VAT deduction for real estate fees remains possible after cessation of activity during asset liquidation

A person who rented garage spaces ceased their activity and sold the premises, inquiring whether they could deduct the VAT from the real estate agent's invoice. The DGT ruled that taxable person status is maintained until the effective cessation of activity and the liquidation of assets occur.

The question raised

Deduction of Value Added Tax incurred for mediation services received from the real estate agency.

The DGT's ruling

The status of taxpayer is not automatically lost due to the cessation of activity or the filing of a tax registry cancellation, but rather when the effective cessation and the liquidation of business assets occur. Therefore, it is possible to deduct VAT on real estate mediation services for the sale of the premises, provided that the legal requirements are met and four years have not elapsed since the right arose.

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