Clarification: input VAT paid by foreign entities for acquisition of properties intended for rental purposes

This document is a clarification of a previous query regarding the refund of input tax paid by entities not established in Spain in relation to the acquisition of properties intended for rental purposes. The refund will be obtained through the general refund procedure within the 4-year time limit, including input tax incurred in previous years before the regulatory change introduced by Law 31/2022.The document refers to a consulting company based in France that intends to acquire a building in Spain for office rentals. The company will not have its own personnel or material resources in Spain but will hire a specialized company to manage the rentals.The clarification is related to a previous binding response given on February 14, 2023 (reference V0244-23), regarding the right of the consulting company to deduct and request a refund or compensation for input tax incurred in previous years before the regulatory change introduced by Law 31/2022. The clarification confirms that the company can use the general refund procedure outlined in Article 115 of the Tax Law, as long as the right to deduction has not expired.The previous binding response mentioned in the document states that, due to the regulatory change, the previous criteria expressed in various binding responses, including V2368-21, V3439-20, and V0562-22, should be modified. Under the current legislation at the time of the response, the refund of input tax incurred by entities not established in Spain for the acquisition of goods and services intended for rental activities subject to tax will be obtained through the general procedure regulated in Article 115 of Law 37/1992.

Source: audiconsultores-etlglobal.com

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