In accordance with the provisions of the fourth paragraph of Article 95 of the VAT Law, interpreted in the light of Articles 168 and 168 bis of Council Directive 2006/112/EC of 28 November 2006 (VAT Directive), a taxable person may deduct the VAT incurred on expenses related to supplies (water, electricity, gas) to real estate properties that are part of the company’s assets and are used for both business activities and private purposes. The deduction of these fees must be made proportionally based on their use for business purposes.
Source: audiconsultores-etlglobal.com
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