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V3082-19 4 November 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

Differentiated sectors regime must be applied for VAT deduction on common expenses

An individual carries out one activity under the equivalence surcharge regime and another under the general regime, sharing expenses such as premises rent. The DGT rules that these activities constitute differentiated sectors and establishes how to deduct VAT on common expenses.

The question raised

Deductibility of the Value Added Tax amounts incurred in the common exercise of said activities.

The DGT's ruling

The activity subject to the equivalence surcharge is a distinct sector from the activity subject to the general regime. For common use goods and services, the input VAT amounts shall be deducted according to the percentage determined by Article 104 of Law 37/1992. The VAT amounts of the general regime sector are deductible according to the rules of Chapter I of Title VIII, whereas those of the equivalence surcharge sector are not deductible.

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