Doctrine by topic · DGT Observatory

Intentionality: 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 10 rulings · 2018–2026

Current position

VAT amounts incurred before the start of activity are deductible if the intention to allocate them to a taxable and non-exempt business activity is proven. This intentionality must be demonstrated through objective elements, such as the nature of the goods or compliance with registration obligations. Deductibility requires that the resulting activity be taxable and non-exempt.

The DGT's position remains constant throughout the analyzed sequence. From 2018 to 2026, the criterion requires proof of the intention of allocation through objective elements to allow the deduction of amounts incurred before the start of activity. No changes or nuances in the requirement of this condition are observed.

Analysis based on 9 of 10 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

10

V5445-26 6 Aug 2026

VAT paid on urbanisation works is deductible if intended for a taxable activity

SG de Impuestos sobre el Consumo

deducción de cuotasurbanización de terrenosempresario o profesionalsujeto pasivointencionalidad LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1

Affects CompanyExpat · Non-residentIndividual

V0701-26 30 Mar 2026

IVA deductions allowed for vehicles purchased before starting driving school activity

SG de Impuestos sobre el Consumo

deducción de cuotasbienes de inversiónintencionalidadactividad empresarialautoescuela LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V0961-24 30 Apr 2024

The deduction of VAT on the acquisition of works of art depends on the status of entrepreneur and the intention of use in the activity

SG de Impuestos sobre el Consumo

deducciónempresariorégimen especialobjetos de arteintencionalidad LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V1034-21 21 Apr 2021

IVA paid on urban property purchase deductible if used in a taxable activity with intention proven

SG de Impuestos sobre el Consumo

derecho a la deducciónactividad empresarialintencionalidadbienes de inversiónprincipio de neutralidad LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V0545-20 6 Mar 2020

Deductibility of a computer purchased before becoming a self-employed professional in IRPF and IVA

SG de Impuestos sobre la Renta de las Personas Físicas

elementos patrimoniales afectosamortizacionesvalor de adquisicióndeducción de cuotasbienes de inversión LIRPF — Ley 35/2006 del IRPF art. 35.1RIRPF — RD 439/2007, Reglamento del IRPF art. 22

Affects CompanyExpat · Non-residentIndividual

V2999-19 28 Oct 2019

The status of entrepreneur and the right to VAT deduction depend on the use for taxable business activities

SG de Impuestos sobre el Consumo

empresario o profesionalderecho a la deducciónactividad sujeta y no exentaintencionalidadprincipio de neutralidad LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V2272-19 22 Aug 2019

Renunciation of VAT exemption allows deduction for property rental

SG de Impuestos sobre el Consumo

exenciónderecho a la deducciónrenuncia a la exenciónsegunda entregaintencionalidad LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V2142-19 13 Aug 2019

Reservation of future lease rights is subject to VAT and prior instalments are deductible if business intent is proven

SG de Impuestos sobre el Consumo

prestación de serviciosderechos arrendaticiosderecho a la deducciónempresario o profesionalintencionalidad LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V2742-18 16 Oct 2018

Hotel construction works subject to 21% VAT and deductible if business intent is proven

SG de Impuestos sobre el Consumo

derecho a la deducciónintencionalidadtipo impositivo reducidoactividad sujeta y no exentaejecución de obras LIVA — Ley 37/1992 del IVA art. 5.dosLIVA — Ley 37/1992 del IVA art. 90.uno

Affects CompanyExpat · Non-residentIndividual

V1850-18 25 Jun 2018

VAT on construction works is deductible if the property is used for business activity, even if some floors remain unlet

SG de Impuestos sobre la Renta de las Personas Físicas

deducción de cuotasactividad empresarialintencionalidadinmovilizadooperaciones exentas LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

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