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V2728-18 15 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Notaries sharing expenses through a civil society cannot be taxed as an entity for VAT or Income Tax

Two notaries inquired whether a civil society established to share common expenses could be a taxable person for VAT purposes and be subject to income attribution for Income Tax. The Directorate General for Taxes (DGT) ruled that notarial activity is personal and non-delegable; therefore, notaries must be taxed individually.

The question raised

Whether said entity shall be considered a taxable person for Value Added Tax purposes and whether it shall be taxed according to the income attribution regime under Personal Income Tax.

The DGT's ruling

The notary activity cannot be exercised by an entity, but rather corresponds entirely to the titular notaries. Therefore, the civil society is not a taxable person for VAT purposes, but rather each notary is an individual entrepreneur and deducts their common expenses proportionally. For IRPF purposes, the income must be attributed individually to each notary, as the entity only serves to cover common expenses and does not carry out its own activity.

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