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 the declaration of the period in which the goods were acquired be rectified?

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

However, if the entity has been declared insolvent and the invoice corresponds to amounts paid before that tax return, deductible VAT must be included in the self-assessment for the period in which it was paid.

2. To calculate the deduction percentage, should advances received from customers be taken into account?

Yes, to calculate the percentage of the pro rata, advances must be taken into account in the year in which the tax is received and accrued.

3. Can VAT paid by a business owner in the purchase of gifts that it will make to its main customers be deducted?

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

4. A business owner acquires a computer for 1,000 euros. Should the deduction that the first year carries out be adjusted for the following four years?

No, the deduction made should not be regularised since it is not considered an investment asset as its value is less than 3,005.06 euros.

5. Is a public deed considered to be an invoice in order to deduct the VAT paid?

The tax deduction for operations carried out by employers and professionals must be justified by means of a complete invoice delivered by the employer or professional who carried out the operation. However, if all the requirements set out in Article 6 of the Regulation governing the purchase and sale deed have been included the invoicing obligations approved by Royal Decree 1619/2012 of 30 November may be used as a supporting document of the right to deduction (DGT-Consultation V2433-08).

6. Should a general subsidy received by a business owner be taken into account to calculate the deduction percentage?

No, since 1 January 2006, grants of any kind received by taxpayers of the tax do not limit the right to deduction. Only calculated in the pro rata calculation, both in the numerator and in the denominator, depending on whether they are part of the gross tax base for transactions that generate the right to deduction, the subsidies that constitute total or partial compensation for the transactions subject to the tax, and those linked to the price.

7. Can VAT paid on the purchase of a car be deducted by a business owner who allocates it to activity and also for private trips?

Yes, it is partially deductible in the part affected by the activity. There is a legal presumption of impairment of the activity at 50%, so 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. And if the person who purchases it is a taxi driver to carry it out the transport of passengers?

In this case, 100% of the tax is assumed to be deductible, in principle, in its entirety, without prejudice to the fact that the Administration can demonstrate a lower impact.