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V3698-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · sujeto pasivo

Joint ownership is not a VAT taxable person if it only manages common expenses without its own activity

A joint ownership of photovoltaic entrepreneurs consulted whether it was a VAT taxable person and how to tax. The DGT responds that, as it does not carry out its own economic activity but only unifies expenses, it acts as a final consumer.

The question raised

1.) Whether the community of property is a taxable person for Value Added Tax purposes and, if so, the manner in which to fulfill its tax obligations in this regard.

The DGT's ruling

If the community of property does not organize means of production nor assume risks jointly, it is not a taxable person for VAT purposes. In that case, it is a final consumer and cannot charge the tax nor deduct input tax. Nevertheless, members may deduct VAT if the invoices are issued in the name of the community but itemize their proportional share, or through the exceptional route of CJEU case law if the invoice is in the name of the community without such itemization.

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