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V1914-19 22 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación directa

Deductibility of utilities in homes partially used for professional activities

A professional seeks clarification regarding the deductibility of utilities in a home or business premises. The DGT clarifies that for Personal Income Tax (IRPF), a specific percentage applies to the main residence, whereas for VAT, expenses are not deductible if used for private purposes.

The question raised

Deductible expenses in Personal Income Tax and Value Added Tax. In particular, the deductibility of invoices derived from utilities contracted at the residence or premises where the activity is carried out.

The DGT's ruling

In Personal Income Tax (IRPF), if the primary residence is partially used for business purposes, utilities (water, gas, electricity, telephone, and internet) are deductible by applying 30% to the proportion of square meters allocated to the activity. In Value Added Tax (VAT), if goods or services are used simultaneously for professional activity and private needs, the input tax cannot be deducted.

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