Skip to content
Back to index
V3318-17 28 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prorrata general

Sale of a non-habitual residence should not be included in the calculation of the general VAT pro rata

A company engaged in accommodation and agricultural activities has enquired whether the sale of a property acquired in 2002 should be included in the calculation of its general VAT pro rata. The Directorate-General for Taxes (DGT) has ruled that, as it is a real estate transaction that does not constitute its habitual business activity, it should not be included.

The question raised

Whether, for the purposes of calculating the general pro rata of Value Added Tax, the aforementioned delivery must be computed.

The DGT's ruling

To determine the deduction percentage of the general pro rata, the amount of real estate transactions that do not constitute the habitual business or professional activity of the taxable person shall not be computed. If the delivery of the dwelling is a real estate transaction that is not part of the company's habitual activity, its amount must not be included in the calculation. Likewise, if the dwelling were an investment asset, the regularization period would have already expired based on its acquisition date.

Book your free first meeting