Doctrine by topic · DGT Observatory

Technical exemption: 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 9 rulings · 2016–2023

Current position

The technical exemption under Article 20.One.25º of the IVA (Value Added Tax) Law only applies when the prior acquisition of the good is excluded from the right to deduct under Articles 95 and 96 of Law 37/1992. It is not applicable if the lack of deduction is due to the good being acquired under the special regime for second-hand goods, as there is no output tax. It also does not apply to the supply of vehicles acquired from private individuals, as there was no prior exclusion from the right to deduct.

The DGT's position remains constant in the definition of the technical exemption, centered on the impossibility of deducting due to legal exclusion. Through various rulings, it has been specified that the exemption is not applicable when the absence of deduction derives from the nature of the acquisition, such as in the second-hand goods regime or purchases from private individuals.

Turning points

  1. V1738-22

    Clarifies that the supply of used vehicles acquired from private individuals does not benefit from the technical exemption because there is no prior exclusion from the right to deduct.

  2. V0383-23

    Establishes that the exemption is not applicable when the lack of deduction derives from having acquired the good under the special regime for second-hand goods.

Analysis based on 9 of 9 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

9

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