Sale of goods with retention of title
Regulations: Art. 8.Two Wealth Tax Law
In the case of the sale of goods with reservation of title, as long as the property is not transferred to the purchaser, the latter's right will be computed by the total amounts that he has delivered up to the date of the accrual of the tax, with said amounts constituting debts of the seller, to whom the value of the asset resulting from the tax regulations will be attributed.
Example
Mr. APH sells to Mr. JPA a premises, valued for the purposes of the Wealth Tax at 100,000 euros, for an amount of 120,000 euros, with a retention of title agreement, having received 70,000 euros on account, which is invested in shares admitted to trading with an average trading value for the fourth quarter of 65,500 euros.
Determine the declaration of the buyer and seller of the aforementioned premises.
Solution
Statement by Mr. JPA (buyer):
Other properties and rights (amount paid on account): 70,000
Statement by Mr. APH (seller):
- Other urban properties (the premises): 100,000
- Shares admitted to trading: 65,500
- Deductible debts (collected on account): – 70,000