Doctrine by topic · DGT Observatory

Right to Deduction: 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

Settled doctrine High confidence 65 rulings · 2015–2026

Current position

The right to VAT (IVA) deduction is exercised on the amounts paid for goods and services used for the activity, even if the acquisition precedes the start of said activity, provided that the intention to use them for the activity is proven through objective elements. In the case of performing taxable and non-taxable operations, the rule of pro rata or differentiated sectors must be applied. However, taxpayers subject to the equivalence surcharge regime are prohibited from deducting the amounts paid for their acquisitions.

The DGT's position remains constant in the application of the rules of use and pro rata. There is a reiteration in the exclusion of the deduction for those taxed under the equivalence surcharge and a confirmation that the intention of use for the activity allows for the deduction of expenses incurred prior to its commencement.

Turning points

  1. V1549-24

    Establishes that the amounts paid before the start of the activity may be deducted if the intention to use them for the activity is proven through objective elements.

Analysis based on 61 of 65 rulings with a stated position. Updated 30 August 2026.

Rulings on this topic

24
V5421-26 30 Jul 2026

Music associations exempt from VAT if social entity requirements met

SG de Impuestos sobre el Consumo
exenciónentidad de carácter socialderecho a la deducciónactividad empresarialsectores diferenciados LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V5411-26 29 Jul 2026

Exemption from VAT depends on inclusion in official study plans

SG de Impuestos sobre el Consumo
exenciónrectificación de cuotasderecho a la deducciónplan de estudiosentidad de derecho público LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V5250-26 23 Jul 2026

Deductibility of VAT on sports tournament organisation costs

SG de Impuestos sobre el Consumo
derecho a la deducciónprorrata especialsectores diferenciadosoperaciones sujetas y no exentasentidad de carácter social LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V5216-26 20 Jul 2026

Language camps taxed at 10% or 21% VAT based on nature and location

SG de Impuestos sobre el Consumo
prestación únicaservicios accesoriosexención por enseñanzaasistencia socialterritorio de aplicación LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno
Affects CompanyExpat · Non-residentIndividual
V1368-26 4 Jun 2026

Public contributions for school transport are not VAT subject operations

SG de Impuestos sobre el Consumo
subvención vinculada al preciocontraprestacióndistorsión de la competenciatransporte de viajerossujeción al impuesto LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V1366-26 4 Jun 2026

Public contributions for school transport are exempt from VAT

SG de Impuestos sobre el Consumo
subvención vinculada al preciocontraprestacióndistorsión de la competenciatransporte de viajerossujeción al impuesto LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V1301-26 27 May 2026

IVA deduction allowed for rental expenses under used goods regime

SG de Impuestos sobre el Consumo
régimen especial de bienes usadosderecho a la deducciónempresario o profesionaltransmisión de bienesalquiler de local LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V1119-26 19 May 2026

IVA due at time of placing goods at customer's disposal

SG de Impuestos sobre el Consumo
devengoejecución de obracertificación de obrapago anticipadoderecho a la deducción LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
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.
Book your free first meeting