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V3345-14 18 December 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

VAT on supplies and services may be deductible if used for renting offices subject to tax

An office owner has enquired whether they can deduct VAT on common expenses and utilities paid personally. The DGT has ruled that these are deductible provided that the office rental constitutes a transaction subject to VAT and not an exempt one.

The question raised

Possibility of deducting the tax paid on the aforementioned common expenses.

The DGT's ruling

The inquirer is considered an entrepreneur or professional when leasing assets to generate income. Therefore, they may deduct VAT paid on the acquisition of supplies and services to the extent that these are used for the provision of a leasing service that is taxable and not exempt from tax.

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