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New guides on the latest Spanish tax and immigration developments.
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A company requested guidance on determining the taxable base for food supplies provided free of charge to non-profit organisations. The DGT ruled that if VAT was deducted upon purchase, the free supply constitutes self-consumption subject to tax, with the taxable base determined by the value of the goods at the time of delivery.
This ruling clarifies the VAT implications for businesses donating stock, ensuring that if input tax was previously recovered, the donation is treated as a taxable event based on current market value.
The tax team reviews your specific situation.
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