Doctrine by topic · DGT Observatory

Foreseeable Use: DGT doctrinal evolution

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

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How the DGT's position has evolved

Settled doctrine High confidence 20 rulings · 2014–2026

Current position

The right to deduction is based on the foreseeable use of the goods, which must be justified by objective elements. If the use is altered before the investment good enters operation, the adjustment is carried out at once through Articles 99.Two and 114 of the IVA (Value Added Tax) Law. If the change occurs when the good is already in use, the adjustment is staggered according to Article 107. In the case of housing intended for sale that transitions to exempt leasing, a self-consumption of goods subject to IVA occurs.

The DGT's position remains constant in the application of adjustment mechanisms according to the timing of the change of use. The rulings have clarified the distinction between direct adjustment (before use) and staggered adjustment (during use), in addition to integrating the factual nature of the accreditation of use. No doctrinal shifts are observed, but rather a systematic application of the IVA Law to different factual scenarios.

Turning points

  1. V3027-14

    Establishes that the foreseeable use must be justified by objective elements and warns that a lack of evidence leads to the impropriety of the deduction.

  2. V0590-24

    Clarifies that in the case of works, the staggered adjustment only applies if they are considered improvement works that increase the value of the good.

Analysis based on 18 of 20 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

20
V1627-23 9 Jun 2023

Deductible VAT on property renovation for rental purposes

SG de Impuestos sobre el Consumo
derecho a la deduccióndestino previsibleregla de prorratabien de inversiónregularización LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno.c
Affects CompanyExpat · Non-residentIndividual
V2478-22 1 Dec 2022

Letting for tourism and residential use are not separate sectors

SG de Impuestos sobre el Consumo
sectores diferenciadosprorratadeduccióndestino previsiblebien de inversión LIVA — Ley 37/1992 del IVA art. 9.1.cLIVA — Ley 37/1992 del IVA art. 9.1.d
Affects CompanyExpat · Non-residentIndividual
V1528-21 24 May 2021

IVA deduction for parking spaces based on foreseeable use

SG de Impuestos sobre el Consumo
destino previsiblebien de inversiónrectificación de deduccionesautoconsumoarrendamiento de bienes LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno
Affects CompanyExpat · Non-residentIndividual

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