Special rules

The VAT Law establishes the following:

1. When the consideration does not consist of money the amount, expressed in money, that has been agreed between the parties will be considered as the tax base. Unless otherwise proven, the tax base will coincide with the amounts resulting from applying the self-consumption rules.

   If the consideration consists partially of money, the tax base will be the greater of the following two amounts: the result of adding to the amount, expressed in money, agreed between the parties, for the non-monetary part of the consideration, the amount of the monetary part thereof or the amount determined by application of the provisions of the previous paragraph.

2. When in the same operation and for a single price goods or services of a different nature are provided, Even in cases of transfer of all or part of a business asset, the tax base corresponding to each of them will be determined in proportion to the market value of the goods delivered or the services provided.

   This rule will not be applicable when the goods or services constitute the object of accessory benefits of another principal subject to the tax. In this case, the accessory benefits follow the regime of the main one.

   Example:

   Part of a company that does not constitute an autonomous economic unit is transferred for 3,000,000 euros.

   The transmitted assets consist of:

   • A building whose market value is 2,000,000 euros
   • Machinery valued at market price at 1,000,000 euros
   • Goods valued at market price of 500,000 euros

   Market value of the entire transferred assets:

   2,000,000 + 1,000,000 + 500,000 = 3,500,000 euros

   The tax base corresponding to each asset will be:

   • Of the building = (2,000,000 ÷ 3,5000,000) x 3,000,000 = 1,714,285.71 euros

     (The transfer of the building will be exempt if it is a second transfer, unless waived)

   • Of the machinery = (1,000,000 ÷ 3,500,000) x 3,000,000 = 857,142.86 euros
   • Of the merchandise = (500,000 ÷ 3,500,000) x 3,000,000 = 428,571.43 euros

   Total: 3,000,000.00 euros

3. In the cases of self-consumption and transfer of goods to another Member State of the European Union that constitute operations assimilated to the delivery of goods , they will apply the following rules:

   • If the goods are delivered in the same state in which they were acquired , the tax base will coincide with that of the acquisition.

   • If the goods delivered have been subjected to manufacturing or transformation processes by the transferor or on his own account , the tax base will be the cost of the goods or services used to obtain said goods, including personnel costs.

   • If the value of the goods delivered has experienced alterations as a result of their use, deterioration, obsolescence, debasement, revaluation or any other cause, it will be considered as the tax base the value of the goods at the time the delivery is made. It will be presumed that a total deterioration has taken place in the case of goods acquired by non-profit entities defined in accordance with the provisions of article 2 of Law 49/2002, of December 23, provided that they are used by them for the purposes of general interest that they develop.

4. In cases of self-consumption of services, the tax base will be considered the cost of providing the services including, where applicable, the amortization of the transferred assets.

5. When there is relationship between the parties involved in a transaction, the tax base will be its normal market value provided that any of the following requirements are met:

   • That the recipient of the operation does not have the right to fully deduct the VAT that is levied on it, and the agreed consideration is lower than the normal market value.

   • That the businessman or professional who carries out the operations is subject to the pro rata rule, and it is an operation that does not generate the right to deduction in which the agreed consideration is lower than the normal market value.

   • That the businessman or professional who carries out the operation is subject to the pro rata rule, and it is an operation that generates the right to deduction in which the agreed consideration is higher than the normal market value.

   normal market value is understood to be the value that would be paid in the TAI under conditions of free competition to an independent supplier for the same goods and services.

   If there is no comparable delivery of goods or provision of services, market value is understood to be:

   • For deliveries of goods: the acquisition price of said goods or other similar goods or a higher amount or, failing that, the cost price at the time of delivery.

   • For services: the sum of the costs that the service entails for the employer or professional.

   The connection may be proven by any of the means admitted by law.

   For these purposes, it will be presumed that there is a link:

   • In the event that one of the intervening parties is a taxpayer of Corporate Tax, or a taxpayer of IRPF or IRNR , when so is deducted from the regulations governing said taxes.

   • In operations carried out between taxable persons and people linked to them by labor or administrative relationships.

   • In operations carried out between the taxable person and his or her spouse or blood relatives up to and including the third degree.

   • In operations carried out between a non-profit entity and its founders, associates, trustees, statutory representatives, members of governing bodies, spouses or relatives up to and including the third degree of any of them.

   • In operations carried out between an entity that is a businessman or professional and any of its partners, associates, members or participants.

   • In operations carried out between an entity and its permanent establishments.

6. In the transfer of goods between commission agent and principal under sales commission or purchase commission contracts in which the commission agent acts in his own name, the tax base will consist of:

   Sales commission: the consideration agreed upon by the commission agent and the client less the commission.

   Example:

   Sales commission contract that entitles the commission agent to receive a percentage (10 percent) on sales made to third parties plus the amount of certain expenses incurred to carry out the activity. The tax base of the deliveries made by the principal to the commission agent acting in his own name is the difference between the consideration agreed upon by the commission agent for the sale of the goods to a third party, and the amount of the gross commission that the commission agent obtains for his intervention. The gross commission includes 10 percent of the amount of the sale to third parties and the expenses that, according to the contract, the commission agent passes on to the client, which include those of each operation and the general expenses of the activity.

   Purchase commission: the consideration agreed upon by the commission agent and the supplier plus the commission.

7. In the provision or acquisition of services carried out on behalf of a third party , when the person providing or acquiring the services acts in their own name, the tax base for VAT corresponding to the operation carried out between the principal and the commission agent will be constituted by:

   • Benefit: the consideration for the service arranged by the commission agent less the commission.
   • Acquisition: the consideration for the service agreed upon by the commission agent plus the commission.

8. When the consideration is set in currency or currency other than the Spanish one, the selling exchange rate is applied, set by the Bank of Spain, which is in force at the time of accrual.