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V2695-18 5 October 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad pública empresarial

Public enterprise bodies may be subject to VAT and enjoy exemptions or deductions based on their activities

A public enterprise body from an autonomous community asks about its VAT liability, exemptions, taxable base and deductions. The DGT clarifies that although not a public administration, its services may be exempt under certain conditions or if they constitute cultural activities.

The question raised

Taxability and, where applicable, exemption of the services provided by the applicant. Tax base. Deductions

The DGT's ruling

Public business entities are considered entrepreneurs if they organize means to carry out onerous activities. Their services may be non-taxable if provided as a personified self-owned means or to the Administration to which they belong, except for specific energy, transport, or telecommunications activities. Cultural activities such as museums or theatrical performances are exempt if carried out by a Public Law entity. For deduction purposes, a reasonable imputation criterion must be used for assets of simultaneous use, excluding those intended exclusively for non-taxable operations.

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