Change in Criteria for Deduction of VAT Expenses for Partially Affected Property

• The DGT adopts the criterion of the TEAC regarding the deduction of VAT on supplies for partially affected property.
• The person in question is a self-employed individual who uses part of their main residence for their business.
• They are questioning the deductibility of VAT on supplies for their residence.
• According to the LIVA article 95, interpreted in light of the Directive 2006/112/CE, the taxpayer can deduct VAT on supplies for properties used for both business and private purposes.
• The deduction should be proportional to the use of the property for business activities.
• The deductibility of partially affected residence expenses represents a change in criteria compared to previous directives.
• The determination of partial affectation of the residence is a factual matter that the DGT cannot decide on, and the taxpayer must provide evidence to justify it.

Source: audiconsultores-etlglobal.com

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.

---

---