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V2861-18 5 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sector diferenciado

Rental of commercial premises and residential properties constitutes a single differentiated sector for VAT pro rata application

The taxpayer asks whether the pro rata rule must be applied to deduct VAT on a property intended for residential rental. The DGT rules that the rental of commercial premises and residential properties belong to the same differentiated sector of activity.

The question raised

Applicability of the pro rata rule for the purpose of deducting input VAT incurred in the acquisition of real estate.

The DGT's ruling

The rental of residential properties and commercial premises constitutes a single differentiated sector of activity as they are grouped within the same category of the CNAE 2009. If the general pro rata rule is applied, the deduction percentage is applied to the total amount of input VAT, whether incurred for residential or commercial properties. If the special pro rata rule is applied, the input VAT incurred from the acquisition of a property intended for residential rental (exempt operation) may not be deducted.

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