7.4.4.4. Revenues
Sales or provision of services
It includes all gross income, whether in cash or in kind, derived from the delivery of products that constitute the object of the activity, as well as, where applicable, those derived from the provision of work and services accessory to the main activity.
When consideration is involved and it is significantly lower than the normal market value of the goods sold and the services provided, the valuation of the same shall be carried out at their normal market value.
In economic operations carried out with a company with which there are related relations, the owner of the activity must imperatively carry out its valuation at the normal market value. Normal market value shall be understood as that which would have been agreed upon by independent persons or entities under conditions of free competition.
Consideration of compensation or passed-on VAT amounts:
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In the case of activities included in the special regime for agriculture, livestock and fishing of the aforementioned tax, the compensation received must be included among the corresponding income derived from sales or from the provision of work or services.
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If the activity is covered by the simplified VAT regime, the amount of the passed-on fees will not be counted as income.
Transformation, processing or manufacturing activities
The value of natural products, whether plant or animal, used in the corresponding production process will be recorded as income, according to their market prices at the time of their incorporation into said process. Likewise, income from self-consumption, subsidies and compensation will be included, where applicable.
If products produced in years prior to 1998 were transferred during the year, the value of the natural products used in the production process must be included as income for this year, in accordance with their market prices at the time of their incorporation into the transformation, production or manufacturing processes.
Self-consumption
It includes both the delivery of goods and provision of services intended for the personal use or consumption of the owner of the activity or the other members of his or her family unit, as well as the delivery of goods or provision of services to other persons free of charge. In both cases, the valuation of these operations must be carried out at the normal market value of the goods or services transferred, or those that have been the subject of self-consumption.
Grants
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Capital subsidies:
These are granted to promote the establishment of an activity or the realization of investments in fixed assets.
They are recorded as income in proportion to the depreciation experienced in the year (amortization) by the assets financed with said subsidies.
In the case of non-depreciable assets, the subsidy will be charged to the results of the year in which the sale or write-off of the assets in the inventory occurs, with a 30% reduction applied since they are considered by regulation to be income obtained in a notoriously irregular manner over time.
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Current grants:
These are generally granted to ensure a minimum profitability or compensate for losses incurred in the activity.
They are fully attributed as income in the period in which they accrue.
- Grants awarded to finance specific expenses : They are recorded as income in the same year in which the expenses they are financing are accrued.