Sale of goods with reservation of title
Regulations: Art. 8.Two Wealth Tax Law
In the case of 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 for the entire amounts that have been delivered up to the date of accrual of the tax, constituting said amounts as debts of the seller. which will be the one to whom the value of the asset element resulting from the tax regulations is attributed.
Example
Don APH sells to don JPA a premises, valued for Wealth Tax purposes at 100,000 euros, for an amount of 120,000 euros, with a reservation of ownership agreement, having received 70,000 euros on account, which invests in shares admitted to trading whose average trading value in the fourth quarter It is 65,500 euros.
Determine the declaration of the buyer and seller of the aforementioned premises.
Solution
Statement from Don JPA (buyer):
Other properties and rights (amount paid on account): 70,000
Declaration of Don APH (seller):
- Other urban properties (the premises): 100,000
- Shares admitted to trading: 65,500
- Deductible debts (collected on account): – 70,000