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V3657-15 23 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

VAT on goods and services used simultaneously for taxable and non-taxable transactions may be deductible

A City Council inquires regarding the deduction of VAT on an investment for a building with administrative, market, and shopping center uses. The DGT clarifies that, if both business activities and non-taxable activities are carried out, an imputation criterion must be applied to the input tax.

The question raised

Issue raised: Deduction of input VAT.

The DGT's ruling

VAT on goods and services used exclusively for non-taxable transactions is not deductible. For acquisitions used simultaneously for taxable and non-taxable transactions, a reasonable and consistent imputation criterion must be adopted and maintained over time. VAT on goods and services used solely for taxable transactions shall be deductible provided that the legal requirements are met.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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