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V1943-18 29 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de grupo de entidades

A company may join a group of entities regime if effective control is held through a majority of voting rights

The consultation examines whether a company can be part of a VAT group of entities if its indirect stake is below 50% but it holds a majority of voting rights. The DGT rules that this is possible provided that such a majority of voting rights allows for effective control over the investee entity.

The question raised

Possibility of integrating a company into the special tax group regime when the indirect holding is less than 50% but the majority of voting rights are held.

The DGT's ruling

For the special tax group regime, the financial link is established when the parent entity has effective control over the subsidiaries through a holding exceeding 50% of the capital or voting rights. If the ownership of the majority of voting rights allows for effective control, the entity may integrate into the group even if the indirect financial holding is less than 50%. It is presumed that, once the financial link is fulfilled, the requirements for economic and organizational linkage are also satisfied, unless proven otherwise.

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