- The report analyzes the artificial interposition of “YY SA” to deduct input VAT for works on properties used by “XX SA” for teaching activities.
- “XX SA” cannot deduct input VAT because teaching is VAT-exempt.
- The arrangement is deemed artificial, with its only effect being to allow “YY SA” to claim VAT deductions that “XX SA” could not.
- The Advisory Commission concludes this constitutes a conflict in the application of the tax rule.
Source: sede.agenciatributaria.gob.es
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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