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VAT practical manual 2022.

Frequently asked questions raised in this chapter

1. A community of owners acquires goods and services necessary for the common elements of the property, receiving the invoices in their name. Can you bill the owners for this repair?

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

2. Who must pay the tax in the case of a service subject to Spanish VAT that consists of the preparation of a computer program commissioned by the client in accordance with its specification carried out by a German company not established to a Spanish taxable person?

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

3. When is the tax due in the event that goods are sold with a suspensive condition and assuming that there have been no advance payments?

The tax accrues when the goods are placed in the possession of the purchaser, even if ownership is not transferred.

4. Is the amount of the deposit delivered to the landlord by the tenant of a premises part of the tax base for VAT ?

The amounts of money delivered to the lessor as a deposit that must be returned to the lessee at the end of the contract do not form part of the tax base as they do not have the character of consideration.

5. In corrective invoices for returned merchandise. Is the tax rate in effect at the time of the sale or the one in effect at the time of the refund applied?

The rate applicable to corrective invoices will be the one in force at the time of accrual of the operations whose invoices are subject to rectification.

6. Can the tax base be modified in the event of non-payment by the client of the amount owed?

As a general rule, it is not possible to modify the tax base. It is only possible when there is an order declaring bankruptcy, in accordance with the provisions of Law 22/2003, of July 9, Bankruptcy, in force since September 1, or when the credit is uncollectible in accordance with article 80.Four of the LIVA .

7. What rate is common bread taxed at?

Common bread is taxed at the reduced rate of 4 percent and includes bread with a hard crumb and flame bread or soft crumb.

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

They will be taxed at the reduced rate of 4 percent as long as they are considered natural products, regardless of the destination given to them by the purchaser (human, animal or other purposes).

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

At the general rate of 21 percent.

10. At what rate is the delivery of a flat that is going to be used as a company's offices taxed?

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

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

No, the repair services to which the 4 percent can be applied are exclusively those related 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 percent.

13. What rate is the entrance fee to movie theaters?

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