Doctrine by topic · DGT Observatory

Deduction Pro-rata: 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

Stable position High confidence 34 rulings · 2014–2026

Current position

The deduction pro-rata is determined according to Article 105 of the IVA (Value Added Tax) Law, applying specific rules depending on the nature of the transactions. Subsidies linked to the price of transactions form part of the taxable base and are included in the pro-rata calculation. In dual entities, mixed-use assets must be allocated using reasonable criteria, with the financial criterion being preferred. Ancillary transactions, defined by qualitative and quantitative criteria, are excluded from the calculation.

The DGT's position remains constant in the application of the criteria for ancillary transactions and the determination of the taxable base. Consultations analyze specific cases such as subsidies, dual entities, or mergers, but without altering the pro-rata calculation structure. The doctrine has focused on refining the distinction between the main activity and ancillary transactions for the calculation of the percentage.

Turning points

  1. V1984-23

    Specifies that subsidies linked to the price of transactions are included in the pro-rata as they form part of the taxable base.

Analysis based on 29 of 34 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V5134-26 9 Jul 2026

Absorption merger has IVA effects from registration entry

SG de Impuestos sobre el Consumo
fusión por absorcióninscripción registralprorrata de deducciónoperaciones exentasempresario LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V1103-26 18 May 2026

Private wealth management does not affect VAT deduction prorata

SG de Impuestos sobre el Consumo
prorrata de deducciónactividad empresarialpatrimonio privadovolumen de operacionesvalores mobiliarios LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V2560-22 16 Dec 2022

Right to IVA deduction depends on activity link and non-exempt operations

SG de Impuestos sobre el Consumo
derecho a la deducciónafectación a la actividadbienes de inversiónexención de asistencia sanitariaprorrata de deducción LIVA — Ley 37/1992 del IVA art. 20.Uno.3ºLIVA — Ley 37/1992 del IVA art. 93.Cuatro
Affects CompanyExpat · Non-residentIndividual
V0761-22 7 Apr 2022

Rounding up allowed in dual entity deduction calculation

SG de Impuestos sobre el Consumo
entes dualesderecho a la deducciónoperaciones no sujetascriterio de imputaciónprorrata de deducción LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual

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