Back to index
V2926-15 7 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Deduction of input VAT on expenses incurred prior to the commencement of business activity

An inactive company enquires whether it can deduct VAT on expenses incurred prior to commencing its advertising activity. The DGT rules that this is possible provided the intention to allocate them to said activity is proven.

The question raised

Question posed: Deduction of input VAT on expenses incurred prior to the effective commencement of the provision of advertising services, period and method of deduction, and census obligations.

The DGT's ruling

It is possible to deduct the amounts incurred prior to the commencement of the habitual making of supplies or services if the requirements of Article 111 of the VAT Law and Article 27 of its Regulations are met. The intention to allocate the goods or services to the activity must be proven with objective elements. The deduction shall be applied through a percentage proposed to the Administration and shall be considered provisional. The right to deduction may be exercised in the return for the period in which they were incurred or in subsequent returns, within the four-year period.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact