Skip to content
Back to index
V3063-23 23 November 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho de deducción

Pro rata rule must be applied when conducting activities subject to and exempt from VAT

A business operator conducting activities that are subject to and not exempt from VAT plans to start a financial agent activity (which is both subject to and exempt from VAT). The DGT rules that, as operations with and without the right to deduction coexist, the pro rata rule must be applied.

The question raised

Issue raised: Deductibility of VAT amounts incurred.

The DGT's ruling

If the taxable person jointly carries out supplies of goods or services that give rise to a right to deduction and others that do not, they must apply the pro rata rule pursuant to Articles 102 et seq. of Law 37/1992. Depending on the circumstances, they may apply the general or special pro rata rule. Likewise, if there are activities in differentiated sectors, the provisions of Article 101 of the Law shall apply.

Book your free first meeting