Doctrine by topic · DGT Observatory

Allocation of Tax Amounts: 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 17 rulings · 2014–2026

Current position

The tax amounts incurred on goods and services intended exclusively for transactions not subject to tax under Article 7.8 of Law 37/1992 are not deductible. For acquisitions intended simultaneously for both taxable and non-taxable activities, a reasonable and homogeneous allocation criterion or the pro-rata rule must be applied. In the case of services provided by public entities to the Administration to which they belong, these are not subject to IVA (Value Added Tax).

The DGT's position remains constant in the application of the allocation rule for shared expenses and the exclusion of deduction for expenses affecting only non-taxable transactions. The doctrine has focused on specifying the non-taxable nature of services between public entities and the Administration, maintaining the same treatment for the deduction of tax amounts.

Analysis based on 16 of 17 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

17
V2694-18 5 Oct 2018

Works with materials may be subject to VAT if involving construction

SG de Impuestos sobre el Consumo
entrega de bienesprestación de serviciosentidad pública empresarialmedio propio personificadoderecho a la deducción LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual

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