Frequently asked questions raised in this chapter

1.A private individual renting a parking space.Should you pay VAT?

Leasing is a transaction which makes the lessor a trader for VAT purposes, irrespective of whether or not the lessor is engaged in another business or professional activity.Therefore, a private individual who rents a parking space must charge and pay VAT on this operation.

2.A private individual who rents a dwelling including the rental of an adjoining parking space.Do you have to pay VAT?

The rental of dwellings is exempt and if the parking space is attached to the dwelling, the whole operation will be exempt from tax.

3.A natural person, employed by a company, performs professional services free of charge for an association during non-working hours and on his own account.Do you have to account for VAT on such transactions?

For VAT purposes, a person who performs all his services professionally free of charge does not have the status of a professional.Therefore, you would not have to account for VAT on these transactions.

4.A natural person promotes the construction of his home.Does it therefore qualify as an entrepreneur for VAT purposes?

No, since the property is not intended for sale, allotment or transfer, but only for the private use of the developer.

5.What if you promote the construction of a building of which you allocate only a part for your home and the rest for sale?

In this case, for VAT purposes, he would become a businessman and must charge VAT when he sells what he has built and declare the VAT on his home when he occupies it, as there is self-consumption.

6.Is the percentage that the owner of premises has in respect of a right of transfer which the lessee has transferred subject to VAT?

The transfer of the premises is a supply of services provided simultaneously by the landlord and the tenant which is subject to VAT.

7.What is the qualification of the purchase of software products consisting of software ordered by the company to be adapted to its structure?

The supply of computer products which have been made to order by the recipient in accordance with the recipient's specifications are considered to be the supply of services, and the supply of the medium is considered ancillary to the supply of services.

8.What about the purchase of software products consisting of mass-produced software?

In this case, they are considered to be standardised IT products as they do not require any substantial modification to be used by any user and qualify as a delivery of goods.

9.An entrepreneur transfers his entire business assets to a single acquirer.Is it necessary for the transfer not to be subject to tax if the acquirer continues to carry on the same activity as the transferor?

Pursuant to number 1 of Article 7 of the Value Added Tax Act, although the acquirer must intend to exploit the business assets, it is not necessary that the economic activity carried out by the acquirer is necessarily the same as that carried out by the transferor.

10.A company is in the habit of giving a series of gifts to its customers, such as samples of its products, lighters, calendars, diaries, etc. Should tax be paid on these gifts?

There are different possibilities:

1. To give out samples of their goods of no estimable commercial value for promotional purposes:in this case, it is a non-subject transaction.

2. He delivers advertising items that have no intrinsic value and are indelibly marked with the advertising slogan and that the delivery to the same recipient does not exceed EUR 200.These deliveries would also not be subject.

3. Other than the aforementioned goods, they are acquired for customer service.In this case, they would also not be subject.

4. Other than the goods set out in (a) and (b) above, they are acquired for other purposes and are subsequently used for customer service.This is the only case where they would be taxable and not exempt.

11.A Spanish private individual purchases a new passenger car in an EU country other than Spain and then brings it to Spain.What tax do you have to pay?

VAT is payable in Spain as it is an intra-Community acquisition of goods, irrespective of who the seller is.

12.What if the vehicle is used?

In this case, if you buy it from an entrepreneur, you will pay VAT in the country where the entrepreneur is established.If purchased from a private individual, no VAT is payable.

13.Are lessons taken at a driving school to obtain a driving licence for passenger cars exempted?

No, transactions carried out by driving schools relating to class A and B driving licences are subject to and not exempt from tax.

14.What if it is a question of a truck driving licence?

In this case, the transactions carried out will be exempted from the tax since the lessons for driving licences C, D and E are covered by the exemption for education and training.