Skip to content
Back to index
V3425-20 26 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Right to IVA deduction in research if future business operation is certain

An autonomous body consults on the deductibility of VAT in public assignments and research projects. The DGT clarifies that research without commercial purpose is not economic activity, but if there is certainty of future business exploitation, the right to deduction remains.

The question raised

1. Deductibility of the Value Added Tax amounts incurred by the applicant in the following operations:

The DGT's ruling

For expenses exclusively intended for operations not subject to tax under art. 7.8 of Law 37/1992, no deduction is applicable. If goods or services are intended simultaneously for both taxable and non-taxable operations, a reasonable and homogeneous criterion for the imputation of tax amounts must be applied. In research projects, if there is certainty that the results will be intended for future business exploitation, the right to deduction is not limited.

Book your free first meeting