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The group of entities may choose to apply the normal special regime or to apply the special regime at an advanced level. This option established in article 163 exies. Five of the VAT Law is developed in article 163 octies. One and Three of the aforementioned Law.

The option for the advanced level will refer to the set of entities that apply the special regime and are part of the same group of entities, and the agreement must be adopted in accordance with the provisions of section « Conditions for the application of the special regime ». This option will be valid for a minimum of one calendar year, being understood to be extended unless waived.

Option for the advanced level. When this option is exercised, established in article 163e. Five of the VAT Law , the tax base for supplies of goods and services carried out in the territory of application of the tax between entities of the same group that apply the special regime, will be constituted by the cost of the goods and services used directly or indirectly, totally or partially, in their realization and for which the tax has been effectively borne or paid.

When the goods are considered investment goods, the taxation must be completed in full within the regularisation period for charges corresponding with said goods.

Each of the entities in the group will act, in their operations with entities that are not part of the same group, in accordance with the general tax rules, without in these cases the regime of the group of entities producing any effect.

When the option for this advanced level is exercised, operations between entities of the same group that apply the special regime will constitute a differentiated sector of the activity, to which the goods and services used directly or indirectly, in whole or in part, will be understood to be affected. in carrying out the aforementioned operations and for which the tax had been effectively borne or paid.

Entrepreneurs or professionals may fully deduct the fees borne or paid for the acquisition of goods and services intended directly or indirectly, in whole or in part, for the performance of these operations, provided that said goods and services are used in the performance of operations that generate the right to deduction in accordance with the provisions of article 94 of the VAT Law . This deduction will be made based on the foreseeable destination of the aforementioned goods and services, without prejudice to its rectification if it is altered.

Entities that exercise the option for the advanced level will apply the special pro rata rule in relation to the differentiated sector of intragroup operations, without prejudice to the options that could be exercised in relation to the rest of the differentiated sectors that, if applicable, had each of the group entities (Royal Decree 1073/2014, of December 19, modified article 61 bis.3 of RIVA with effect from January 1, 2015) .

The amount of the deductible contributions for each of the businessmen or professionals integrated into the group of entities will be the one resulting from the general tax rules. These deductions will be made individually by each of the businessmen or professionals who apply the special regime of the group of entities.

Once the amount of the deductible contributions has been determined for each of said businessmen or professionals, they will be the ones who individually exercise the right to deduction.

In the event that any of the remaining special regimes regulated in the VAT Law are applicable to the operations carried out by any of the entities included in the group of entities, said operations will follow the regime of deductions that correspond to them according to said regimes.