Doctrine by topic · DGT Observatory

Group of Entities Regime: 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 8 rulings · 2015–2024

Current position

To apply the group of entities regime, the parent entity must exercise effective control over its subsidiaries through a holding of more than 50% of the capital or voting rights. Compliance with the financial link allows for the presumption of the existence of economic and organizational links, unless proven otherwise. Regarding VAT (IVA), the tax amounts for goods and services related to intra-group transactions are deducted according to the pro-rata of the differentiated sector.

The DGT's position remains constant regarding the control requirements and the presumption of economic and organizational links based on financial control. Recent rulings have shifted towards the technical application of the regime in specific aspects, such as the allocation of costs for capital goods and the application of the pro-rata in VAT (IVA).

Analysis based on 7 of 8 rulings with a stated position. Updated 2 October 2026.

Rulings on this topic

8
V2444-24 4 Dec 2024

Transfer of most voting rights allows application of VAT group regime

SG de Impuestos sobre el Consumo
régimen de grupo de entidadesentidad dominanteentidad dependientederechos de votovinculación financiera LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 nonies
Affects CompanyExpat · Non-residentIndividual

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