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V4177-16 30 September 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen de grupo de entidades

Requirements for applying the group of entities regime and determining the taxable base for intra-group services

Whether a company with a 51% stake in another entity can apply the special group of entities regime. The DGT rules that this is possible provided that the requirements for financial, economic, and organisational links are met.

The question raised

1.- Compliance with the subjective requirements for the application of the group of entities regime provided for in Law 37/1992.

The DGT's ruling

To apply the group of entities regime, there must be a dominant entity with effective control over dependent entities through a shareholding exceeding 50% of the capital or voting rights. Furthermore, links must exist in financial, economic, and organizational terms. It is presumed that if a financial link exists, the economic and organizational links are also met, unless proven otherwise. In the case of intra-group services under this regime, the tax base shall be the cost of the goods and services used for their performance upon which the tax has been borne.

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