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V1975-17 21 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · comunidad de bienes

VAT invoicing and IRPF withholding depend on whether the community of property acts as an economic unit

A tenant company asks whether it should receive separate invoices from the co-owners of a property or a single invoice from the community of property, and whether it must apply IRPF withholdings. The DGT rules that invoicing and VAT taxpayer status depend on whether the community of property assumes the risk and activity jointly or individually.

The question raised

Obligation to invoice for VAT. Obligation to perform withholdings on account for Personal Income Tax.

The DGT's ruling

Regarding VAT, if the community of property orders resources and assumes risk jointly, it is a taxable person and must issue a single invoice. If the operations refer to the members individually, each must issue an invoice according to their proportional share. Regarding Personal Income Tax (IRPF), the consulting entity must apply a 19% withholding tax on the rental income, unless a legal exception applies.

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