The Supreme Court analyzes the deductibility of VAT payments incurred in the acquisition of goods or services within the framework of non-subject or subject or exempt operations, when such goods or services have provided an economic benefit that favors the general activity.
The Supreme Court issued judgment 1695/2022 on December 20, 2022, in appeal number 1399/2021, establishing doctrine regarding the deduction of fees forIVAABBRsupported.
The issue that presented objective legal interest for the formation of jurisprudence consisted of "[...] Determining whether the deduction of the quotas ofIVAABBR supported by a commercial entity in the acquisition of goods or services within the framework of non-taxable or taxable and exempt transactions, when such goods or services have resulted in an economic benefit that favored the general activity [...]".
The conclusion reached by the Supreme Court establishes the following jurisprudence in response to the question of cassation interest:
"a) The deduction of the fees is appropriate forIVAABBR supported by a commercial entity in the acquisition of goods or services within the framework of non-taxable or taxable and exempt transactions, when such goods or services have resulted in an economic benefit that favors the general activity.
b) In particular, this is the case with the deduction ofIVAABBR satisfied with the provision of advisory services in an expropriation procedure with the aim of achieving a higher fair price than that initially recognized by the Administration, taking into account the nature of the expropriated property and its direct relationship with the company's own activity.
c) There is a right to that deduction ofIVAABBR supported when the goods delivered or services received give rise to a general benefit for the taxable person, even if the activity to which it is directed is exempt or not subject, provided that, in addition to that general benefit, which is undoubted here, the operations carried out by the person claiming the deduction, within the framework of their economic activity, constitute taxable operations, which in this case has not been disputed."
This is, moreover, the solution that most respects the principle of fiscal neutrality, by virtue of which the taxpayer must be exempt from tax expenses in respect ofIVAABBR due to the receipt of services provided by third parties that benefit their general economic activity subject, as a whole, to the harmonized tax that concerns us.
You can consult this sentence in the following link: STS 4923/2022 of 12/22/22 .