Is it possible to recover the VAT paid on the community of owners’ fees for the last 4 years?

Companies generally own several premises in which they set up their headquarters or branches, and for which they periodically pay fees to the Community of Owners as well as extraordinary payments for the maintenance of the building. This amount is considered to be an irrecoverable expense, as the bills are paid by the Community set up for this purpose, and the expense is then distributed among the different owners by means of receipts.

Can the Community of Owners deduct VAT on invoices?

No. The Communities, as they are considered final consumers in the eyes of the Tax Agency, cannot deduct the VAT borne on the expenses they face, such as supplies, lifts, cleaning, caretaking, surveillance, building work, repairs, etc., so the fees paid by the co-owners must take into account this increase in the value of the service.

Who can actually recover the VAT once the fees have been paid, is the company that owns the property, for the amount proportional to its participation in the community.

How can I get a refund of the Community fees?

In order to extend the VAT recovery service for travel receipts (T&E), at 60dias we offer our clients the possibility of recovering a part of those expenses that in principle we thought were irrecoverable.

The Tax Agency empowers the owner companies attached to a Community of owners the possibility of deduction in all invoices of the expenses in which it participates and to be able to deduct the VAT corresponding to its coefficient of participation in the same.

What do we do from 60days?

We first contact the Property Administrator to analyse in detail the expenses in which the client participates in order to request invoices from the corresponding suppliers. We then send the client a file, adapted to their accounting system, with all the invoices obtained, detailing the different participation coefficients with the amount to be offset in their next VAT return.

What are the advantages?

• The possibility of recovering the VAT on the expenses of the last 4 years (Spain).
• Significant reduction in real estate expenses.
• Increased cash flow by being able to offset more input VAT.
• The speed of the contracted service, in 3-4 months we recover the last 4 years.