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V4044-15 16 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción

VAT installments on housing may be deducted in the proportion used for professional activity

A self-employed worker inquires whether she can deduct VAT on her primary residence when using a room as an office. The DGT responds that partial deduction is possible if the requirements for investment goods are met, but excludes utilities.

The question raised

Question posed: Deduction of the VAT installments incurred from the acquisition of the primary residence, in proportion to the part used as a professional office. Deadlines for exercising the right to deduction.

The DGT's ruling

The installments incurred from the acquisition of a dwelling may be deducted in the proportion in which it is used for professional activity, being treated as an investment good. The degree of use must be proven by any means of evidence admitted in law. However, utilities such as water, electricity, or gas are not deductible due to their simultaneous use for private needs. The right to deduction may be exercised up to four years after the right arises.

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