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Practical Handbook VAT 2021

Frequently asked questions raised in this chapter

1.A community of owners acquires goods and services necessary for the common elements of the property and receives invoices in its name.Can you invoice the owners for the cost of this repair?

No, a community of owners under the horizontal property regime, which purchases goods and services necessary for the maintenance of the common elements, belongings and services and which distributes the expenses among the co-owners, does not carry out business activities, but is considered as a final consumer for the purposes of VAT.

2.Who is liable to pay the tax in the case of a service subject to Spanish VAT consisting of the development of a computer programme on behalf of the customer according to his specification by a non-established German company to a Spanish taxable person?

The Spanish company, since it is a taxable person by investment.

3.When does tax become due in the case of a sale of goods subject to a condition precedent and assuming that there have been no advance payments?

The tax becomes due when the goods are placed in the possession of the acquirer, even if ownership is not transferred.

4.Does the amount of the deposit paid to the lessor by the lessee of premises form part of the taxable amount of VAT ?

The sums of money paid to the lessor as a deposit which must be returned to the lessee at the end of the contract do not form part of the taxable base as they are not in the nature of consideration.

5.In the case of corrective invoices for the return of goods.Is the tax rate in force at the time of the sale or the tax rate in force at the time of the refund applied?

The rate applicable to corrective invoices shall be that in force at the time of the accrual of the transactions whose invoices are being corrected.

6.Can the taxable amount be changed in the event of non-payment by the customer of the amount due?

As a general rule it is not possible to change the tax base.It is only possible when there is a declaration of insolvency, in accordance with the provisions of Law 22/2003, of 9 July, in force since 1 September, or when the credit is uncollectible in accordance with Article 80.Four of the LIVA.

7.At what rate is ordinary bread taxed?

Common bread is taxed at the reduced rate of 4 per cent and includes bread with a hard crumb and bread with a soft crumb.

8.At what rate are cereals for livestock feed taxed?

They shall be taxed at the reduced rate of 4 per cent provided that they are natural products, irrespective of their intended use by the purchaser (human food, animal feed or other purposes).

9.At what rate is the sale of school bags and educational puzzles taxed?

At the general rate of 21 per cent.

10.At what rate is the delivery of a flat to be used as a company office taxable?

It will be taxed at the reduced rate of 10 per cent provided that, objectively considered, it is suitable for use as a dwelling, even if it is used for other purposes.

11.Can the 4% rate be applied to repair services for a passenger car used for the transport of a person with reduced mobility?

No, the repair services to which the 4% can be applied are exclusively those relating to the repair of vehicles included in number 20 of Annex I of Royal Legislative Decree 339/1990.

12.At what rate is the sale of textbooks taxed?

At the reduced rate of 4 per cent.

13.At what rate are cinema admissions taxed?

From 5 July 2018, they will be taxed at the reduced rate of 10 per cent.Until that date, at the general rate of 21 per cent.