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VAT practical manual 2021.

General scheme

In the application of the Tax, taking into account what we have seen so far, it is convenient to distinguish two clearly differentiated parts: the VAT accrued and the deductible input VAT.

1. Accrued VAT

For VAT to be applied to a transaction, the following aspects must be taken into account:

  1. It must be a delivery of goods or a provision of services carried out by a businessman or professional, an intra-community acquisition of goods or an import of goods.

  2. It should not be one of the operations declared not subject to or exempt by the Law.

  3. The operation must be understood to have been carried out in the Balearic Peninsula or Islands.

  4. The operation must be understood as produced or carried out, since only when it is produced or carried out is the VAT corresponding to the operation in question accrued (unless it is the special regime of the cash criterion or there are advance payments prior to carrying out the operation. ).

  5. The amount (tax base) on which the tax rate should be applied must be determined.

  6. Determination of the type of tax corresponding to the operation.

2. Deductible input VAT

In general, business owners and professionals can deduct input VAT on their purchases, acquisitions and imports from the output VAT, as long as they meet the requirements for the deduction that can be consulted in Chapter 5 of this Practical manual.