Doctrine by topic · DGT Observatory

Right to Deduct: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Stable position High confidence 10 rulings · 2015–2023

Current position

The right to deduct VAT (IVA) requires the status of entrepreneur or professional and the use of the good for the economic activity. The exemption under Article 20.One.25º of Law 37/1992 is applicable only if the impossibility of deducting upon acquisition derives from the limitations of Articles 95 and 96. In the case of partial use, the tax base must be calculated by applying the percentage of use to the total consideration.

The DGT's position remains stable regarding the requirements of use and taxpayer status. A technical precision is observed in the application of the exemption under Article 20.One.25º, clarifying that it is not applicable if the lack of deduction does not stem from the limitations of Articles 95 and 96. Likewise, it establishes the need for business use to be total in all its aspects to determine the tax base.

Turning points

  1. V1313-23

    Establishes that the use of a vehicle must be manifested in all its aspects, requiring the application of the percentage of use to the total consideration for the tax base.

  2. V2998-23

    Reiterates that the exemption under Article 20.One.25º only applies if the acquisition resulted in the total exclusion of the right to deduct.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
V2288-17 8 Sept 2017

Non-established US entities are liable for VAT on intra-Community acquisitions and imports

SG de Impuestos sobre el Consumo
sujeto pasivoadquisición intracomunitariaimportación de bienesderecho a deducirreciprocidad LIVA — Ley 37/1992 del IVA art. 6, 8, 13, 15, 18, 26.Cuatro, 71, 84.Uno.2, 85, 86, 99, 115, 119, 119 bis, 164, 167LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

VAT advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact