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Practical Handbook VAT 2022


1.Determination of the tax base on a transaction-by-transaction basis

Taxable persons who meet the requirements that we will see later have two alternatives for each of their transactions:

  1. Apply the special scheme to their supplies:

    1. In transfers, they will charge VAT applying the tax rate corresponding to the good supplied, applying a special procedure for determining the taxable base.

    2. The VAT incurred on the purchase of the goods resold is not deductible, without prejudice to the deduction of the other charges incurred in the course of their business (telephone, rent, repairs, etc.).

    3. The taxable amount shall be the profit margin.

  2. Apply the general tax regime.Without the need for notification, they may not apply the special scheme to their supplies, which means that:

    1. They must charge VAT on the entire consideration.

    2. They may deduct the tax paid on the acquisition of the goods resold, although they may not make the deduction until the corresponding supplies are accrued.

2.Determining the tax base on a flat-rate basis

Where the taxable person has opted for the determination of the taxable amount by means of the flat-rate margin scheme, he must determine the taxable amount of all supplies of goods covered by the application of the flat-rate margin scheme by that procedure, without being able to apply the general tax scheme in respect of such supplies.