Which activities qualify for the deduction?

The following operations carried out in the territory of application of the Tax (Peninsula and Balearic Islands) give the right to deduction:

• Deliveries of goods and services that are subject to and not exempt from VAT .

• Exports, intra-Community supplies and supplies assimilated to the above. These are exempt transactions, which are eligible for deduction (full exemption).

• The provision of services whose value is included in the taxable base for imports of goods. These are exempt transactions, which are eligible for deduction (full exemption).

• Operations not subject to the application of the Tax in Spanish territory because they are not located in the Peninsula or the Balearic Islands, which would have generated the right to deduction if they had been carried out there.

Therefore, does not give the right to deduct the performance of operations that are exempt by the provisions of art. 20 of the VAT Law (health care, education, certain real estate operations, social assistance, financial and insurance operations among others).