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V4169-15 30 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · holding mixta

Mixed holding companies may deduct input VAT based on their activity and the applicable pro rata

A holding company providing management services and conducting financial activities has queried its right to VAT deduction. The DGT has ruled that, as a mixed holding company, it may deduct input VAT on general expenses using the pro rata method, and that its financial activities are considered ancillary.

The question raised

Deduction of input VAT incurred by the entity.

The DGT's ruling

A mixed holding company is entitled to deduct VAT on goods and services intended for its management services. If it also carries out financial activities, these are considered ancillary if they are related to the main activity and are not more significant than it. In that case, they do not constitute a separate sector if their volume does not exceed 15% of the main activity and must be included in the calculation of the general pro rata.

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