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V3321-20 6 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Partial VAT deduction possible for property used as professional office

The consultant asks whether VAT can be deducted on the purchase of a home partially used for professional activities. The DGT responds that, as the property is an investment asset, a partial deduction based on the professional usage rate is allowed.

The question raised

Question raised: Deductibility of Value Added Tax amounts incurred in the acquisition of a dwelling by the party that will allocate part of it to a professional office.

The DGT's ruling

VAT amounts incurred in the acquisition of real estate may be partially deductible to the extent that they correspond to the degree of use intended for the conduct of the professional activity. If a portion of the surface area is used exclusively for the activity, the proportional part of the amounts may be deducted. This degree of use must be proven by any means admitted in law, and neither the tax return-settlement nor mere accounting entries shall be sufficient. The deduction must be regularized if the actual degree of use varies from the initial one.

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