Publication of a copy of the conflict report No. 6. Value Added Tax. Exempt activities Artificial filing of a company for deduction of input VAT. Tenant company

The artificial interposition of a company, YY, SA, as the owner and lessor of the facilities in which entity XX, SA carries out its teaching activity, an activity subject to and exempt from VAT, is declared as a conflict in the application of the rule. The lease contract establishes a significantly reduced price given the characteristics of said facilities, which prevents the lessor, YY, SA, from covering all the expenses and also entails YY,SA expenses that by contract would correspond to the lessee, XX, SA After analyzing the concurrent circumstances, the advisory commission concludes that the operation obeys exclusively a fiscal purpose, and that the purposes that are typical of legal businesses have been distorted employees, so that YY's intervention is strictly due to improperly overcoming the impossibility of deducting and, ultimately, recovering the VAT payments incurred on the expenses and works carried out on the property where the ZZ school is located, operated by the entity XX, SA The present conflict is identical to Conflict No. 6 bis, referring in this case to the tenant company.