Doctrine by topic · DGT Observatory

Grace Period: 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 15 rulings · 2015–2024

Current position

In leases with grace periods, the transaction is considered to be for consideration if the lessee assumes expenses or carries out refurbishment works. VAT is accrued when the price becomes due according to the contract, generally at the end of the grace period. If the rent is paid with a periodicity of more than one year, the accrual is made on December 31st on a pro-rata basis.

The DGT's position remains constant regarding the onerous nature of leases with a grace period when works or expenses are assumed by the lessee. The doctrine has moved from focusing on the taxable base of the expenses to specifying the moments of tax accrual following the grace period. No changes in criteria are observed, but rather a repeated application of the nature of the consideration in kind.

Analysis based on 15 of 15 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

15
V3127-18 5 Dec 2018

Extending a mortgage term via a grace period may be exempt from AJD tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
periodo de carencianovación modificativaalteración del plazoexención fiscalpréstamo hipotecario Ley 2/1994LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V1585-18 8 Jun 2018

Voluntary VAT input tax can be deducted even if charged late

SG de Impuestos sobre el Consumo
repercusión del impuestoderecho a la deducciónperiodo de carenciadevengocuotas soportadas LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.3
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.
Email
Contact