Skip to main content

Special system for additional VAT

Skip information index

Who is applicable for the special regime for additional VAT?

Retail traders, natural persons or companies attached to the Personal Income Tax income allocation regime (civil societies with no commercial form, unsettled estates or joint property entities, when all partners, co-proprietors or participants are natural persons), unless selling the following products:

  1. Engine-powered vehicles to drive on roads, and their trailers.
  2. Boats and ships.
  3. Airplanes, light aircraft, sailboats and other aircraft.
  4. Accessories and spare parts for means of transport included in the numbers above.
  5. Jewellery, gems, precious stones, natural or cultured pearls, articles made wholly or partly from gold or platinum. Fine jewellery that contains precious stones, natural pearls or the aforementioned metals, even if only coated or plated, unless the content of gold or silver is less than 35 microns thick.
  6. Articles of clothing or personal adornment made of luxury leathers. Exceptions to the provisions in this point are: bags, purses and similar items, as well as garments elaborated exclusively with remnants and waste, heads, feed, tails, scraps, etc., or with real or imitation leathers.
  7. Original art objects, antiques and collectors' items defined in article 136 of the VAT Act.
  8. Goods that have been used by the taxpayer (transferor) or by third parties prior to their transfer.
  9. Appliances and accessories for poultry and beekeeping.
  10. Petroleum products whose manufacture, importation or sale is subject to special taxes.
  11. Machinery for industrial use.
  12. Materials and articles for the construction of buildings or urban developments.
  13. Minerals, except coal.
  14. Iron, steel and other metals and their alloys, not manufactured.
  15. Investment gold, as defined in article 140 of the VAT Act.

For these purposes, RETAIL TRADERS are considered to be those who regularly sell property and livestock without having subjected them to processing, elaboration or manufacturing, provided that sales to end consumers during the previous year were less than 80% of the total sales made. If the activity was not carried out in said year, or was taxed according to the objective estimate method of Personal Income Tax, and the taxpayer has the condition of a retailer for Business Activities Tax, there is no need to meet the requirement of the minimum sales percentage.

If these requirements are not met, the general regime will apply. Nevertheless, there are some retail trade activities that can be taxed under the simplified regime.