COMMUNITY OF OWNERS: VAT RECOVERY FOR SPANISH COMPANIES.
An important part of the property owned by the companies will be integrated into a community of owners. These communities of owners are considered final consumers for the purposes of the VAT Law and therefore cannot be deducted from the fees paid on the occasion of such tax (supplies, maintenance of common areas, repairs …).
Subsequently, the receipts to be paid periodically are sent to the co-owners/owners, including in the corresponding quota the VAT that the communities of owners have had to bear.
REDUCTION OF PROPORTIONAL FEE FOR SUPPORTED VAT. REQUIREMENTS AND CONDITIONS FOR THIS DEDUCTIBILITY.
The role of the European Court of Justice is to ensure that EU legislation is complied with by Member States. This court has determined the suppositions and requirements in which an owner (who must belong to a community of owners) can deduct VAT from the proportional part of the quota that his community has supported, based on his share of participation.
• Judgment of the Court of Justice of the European Communities, dated April 21, 2005
• Binding consultation V0027-14 of January 31 of the General Directorate of Taxes