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V5061-26 23 June 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Purchase of a rental property may be subject to VAT and allow deductions

The consultant asks whether buying a commercial property for rental purposes is subject to VAT and whether deductions can be claimed. The DGT responds that if the exemption for the second phase of construction is waived, the transaction will be subject to VAT and the buyer may deduct payments if they can prove intent to use the property for business activities.

The question raised

Whether the transfer of the premises is subject to Value Added Tax and whether the applicant may deduct the Value Added Tax amounts incurred in the purchase of the premises.

The DGT's ruling

The delivery of a premises may be subject to VAT if the exemption for subsequent deliveries of buildings is waived, with the acquirer being the taxable person. The right to deduction arises if the acquirer is a businessperson or professional and there exists the intention, confirmed by objective elements, to allocate the asset to an activity that generates a right to deduction. Such intentionality is a matter of fact that the interested party must prove by any admissible means of evidence.

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