Frequently asked questions raised in this chapter

1. If an invoice is received two years after the purchase, should the deductible VAT be declared in the following self-assessment or should a rectification be made to the declaration for the period in which the goods were acquired?

VAT will be deducted in the settlement period in which the invoice is received, or in the following periods, since it is necessary for the taxable person to be in possession of the invoice to be able to exercise the right to deduction. In any case, it must be taken into account that the right to deduct expires within four years from the date of the right to deduct.

However, if the entity has been declared bankrupt and the invoice corresponds to fees paid prior to said declaration, the deductible VAT must be included in the self-assessment corresponding to the period in which they were paid.

2. When calculating the deduction percentage, should advances received from clients be taken into account?

Yes, to calculate the prorated percentage, advance payments must be taken into account in the year in which they are received and the tax is accrued.

3. Can the VAT borne by a businessman on the acquisition of gifts to his main clients be deducted?

No, input VAT on goods intended for customer service is not deductible.

4. A businessman buys a computer for 1,000 euros. Should you regularize the deduction you make in the first year for the following four years?

No, you do not have to regularize the deduction made since it is not considered an investment asset as its value is less than 3,005.06 euros.

5. Is a public deed considered an invoice for the purposes of deducting input VAT ?

The tax deduction for transactions carried out by entrepreneurs and professionals must be justified by a complete invoice provided by the entrepreneur or professional who carried out the transaction. However, if all the requirements set out in article 6 of the Regulation governing billing obligations approved by Royal Decree 1619/2012, of November 30, have been included in the deed of sale, it may be used as proof of the right to the deduction ( DGT - Query V2433-08).

6. Should a generic subsidy received by a business owner be taken into account when calculating the deduction percentage?

No, since 1 January 2006, subsidies of any kind received by taxpayers do not limit the right to deduction. Only those subsidies that constitute full or partial compensation for the taxable transactions and those linked to the price are included in the calculation of the apportionment, both in the numerator and in the denominator depending on whether they form part of the taxable base of operations that generate or do not generate the right to deduction.

7. Can input VAT be deducted on the purchase of a car by a businessman who uses it for business and also for private travel?

Yes, it is partially deductible in the part affected by the activity. There is a legal presumption of 50 percent impact on the activity, so that, if a different percentage is to be deducted, the taxpayer or the Administration must prove a greater or lesser impact on the activity, respectively.

8. What if the person who buys it is a taxi driver who wants to use it to transport passengers?

In this case, it is presumed to be 100% affected, considering it in principle fully deductible, without prejudice to the Administration being able to demonstrate a lower affectation.