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VAT practical manual 2022.

Operation

1. Determining the tax base on a transaction-by-transaction basis

Taxpayers who meet the requirements that we will see later have two alternatives in each of their operations:

  1. Apply the special regime to your deliveries:

    1. VAT will be charged on transfers, applying the tax rate corresponding to the good delivered, applying a special procedure for determining the tax base.

    2. The VAT incurred on the acquisition of resold goods is not deductible, without prejudice to the deduction of the remaining fees incurred in the exercise of its activity (telephone, rentals, repairs, etc.).

    3. The taxable base will be the profit margin.

  2. Apply the general tax regime. Without the need for communication, they may not apply the special regime in their deliveries, which means that:

    1. They must charge VAT on the entire consideration.

    2. They may deduct any fees that they may have incurred in the acquisition of the resold goods, although they may not make the deduction until the corresponding deliveries are accrued.

2. Determination of the tax base in a global manner

When the taxpayer has opted to determine the tax base using the global profit margin, he must use this procedure to determine the tax base of all supplies of goods to which the application of said global margin regime refers, without being able to apply the general tax regime with respect to such supplies.