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V2614-24 19 December 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Acquisition and collection of credit portfolios does not confer entrepreneur status or VAT deduction rights

An entity purchasing non-performing loan portfolios has queried whether it qualifies as a taxable person for VAT purposes and if it can deduct VAT on debt collection management services. The DGT ruled that the collection of credits is an exempt operation and does not constitute a taxable event; therefore, the entity does not qualify as a taxable person and cannot deduct VAT.

The question raised

1. Whether the consulting entity holds the status of entrepreneur or professional for Value Added Tax purposes due to the economic activity of collecting the acquired credits.

The DGT's ruling

The acquisition of credit portfolios and their subsequent collection does not constitute a taxable event for VAT, as the assignment of credits is an exempt operation. Therefore, the entity does not acquire the status of entrepreneur or professional by virtue of this activity. As it is not an entrepreneur and does not carry out taxable operations, it is not entitled to the deduction of VAT amounts incurred on the debt collection management services received.

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