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A professional working from home enquired whether they could deduct VAT on utilities such as electricity or water based on the proportion used for their business. The Directorate General for Taxes (DGT) ruled that, as these are not considered investment goods, partial deduction is not possible when they are used simultaneously for private needs.
Cuestión planteada Posibilidad de deducción de las cuotas del Impuesto sobre el Valor Añadido soportadas por consumos de suministros (electricidad, agua, calefacción, etc.) en la proporción en que el inmueble esté afecto a la actividad empresarial o profesional.
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