Deduction of VAT paid by a taxable subject on supplies, such as water, electricity, or gas, to a property partially used for their economic activity

In accordance with the provisions of the fourth section of Article 95 of the VAT Law (LIVA), interpreted in the light of Articles 168 and 168 bis of Council Directive 2006/112/EC of 28 November 2006 (VAT Directive), the taxable subject is entitled to deduct the VAT paid on supply expenses (water, electricity, gas) related to properties that, being part of the company’s assets, are used for both business activities and private use. The deduction of said VAT must be made proportionally according to their use for business activities.

Source: gob.es

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