Skip to content
Back to index
V2143-24 8 October 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial del grupo de entidades

A foundation may act as the controlling entity of a group of entities for VAT purposes if legal requirements are met

A non-profit foundation conducting VAT-taxable activities and owning 100% of a commercial company has enquired whether it can apply the special VAT group regime. The DGT has ruled that, provided the requirements for linkage and control are satisfied, the foundation may act as the controlling entity.

The question raised

Whether the consulting foundation may opt for the application of the special tax group regime in Value Added Tax.

The DGT's ruling

A foundation that holds the status of a trader or professional for VAT purposes may hold the status of a parent entity. To do so, it must meet the requirements of having its own legal personality, effective control through a shareholding of more than 50% in capital or voting rights, and integration in financial, economic, and organizational terms. If these requirements and those of Articles 163 quinquies to 163 nonies of Law 37/1992 are met, the foundation and its subsidiary may apply the special tax group regime.

Book your free first meeting