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Conflict no. 10.Value Added Tax.Exempt activitiesArtificial interposition of company for input VAT deduction

For the purposes of the provisions of Article 206.bis of Law 58/2003, of 17 December, on General Taxation and in accordance with the provisions of Article 194.6 of the General Regulations on tax management and inspection actions and procedures and on the development of the common rules for tax application procedures, approved by Royal Decree 1065/2007, of 27 July, a copy of the report of the Consultative Commission on conflicts in the application of the regulations relating to the taxpayer "Z INMOBILIARIA" is hereby published.

The Report states that there is a conflict in the application of the tax rules in the case of the creation and artificial interposition of an entity, Z INMOBILIARIA, which carries out the construction of an educational complex and the acquisition of the necessary furniture, in order to lease it under non-market conditions to another related entity without the right to deduct input VAT, Z EDUCACIÓN, for its operation as a school using a special educational method.