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V2820-23 17 October 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comunidad de bienes

IVA deductions allowed for dissolved community of goods

A physical person asks whether IVA paid by a dissolved community of goods on works carried out can be deducted. The DGT responds that IVA amounts borne by the community during its business activity are deductible if legal requirements are met, even after the cessation of activity.

The question raised

Whether the Value Added Tax fees derived from the specified works executions, the recipient of which was the community of property, may be deducted.

The DGT's ruling

The fees incurred by a community of property in the course of its business activity may be deducted by the same, even if the activity has ceased and the entity is dissolved. To this end, the community must have held the status of entrepreneur or professional and the operations must relate to its activity in an undifferentiated manner. The outstanding tax obligations of the dissolved entity are transferred to the recipients of its assets or to the partners.

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