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Publication of a copy of the Conflict report No. 7. Value Added Tax. Artificial filing of a community of property to obtain refunds of input VAT on exempt activities

For the purposes of the provisions of article 206.bis of Law 58/2003, of December 17, General Tax and in accordance with the provisions of article 194.6 of the General Regulation of the actions and procedures of tax management and inspection and of development of the common rules of tax application procedures, approved by Royal Decree 1065/2007, of July 27, a copy of the report of the Advisory Commission on conflict in the application of the rule relating to the taxpayer "COMMUNITY OF PROPERTY".

The report declares that there is a conflict in the application of the tax rule in a case of filing by a community of property as the lessor of some premises, occurring at a time close to the completion of the renovation work thereon. The premises are rented for a lower value than the market value to Mr. MM, one of the two community members of said Community, who carries out a professional activity exempt from VAT that does not generate the right to deduction. After analyzing the concurrent circumstances, it is concluded that the operation does not result in any relevant economic effect other than tax savings, that is, the full deduction of the VAT contributions incurred for the renovation and conditioning of the premises exclusively used for the D-exempt activity. .MM.