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V2527-21 ·8 October 2021 ·consulta-vinculante Medium impact
Tax

Standard VAT regime applies to the total consideration for the sale of new watches

A watch trading company has requested clarification on how to settle VAT for the sale of new watches, as opposed to second-hand ones. The DGT clarifies that the general regime applies to new watches, requiring the 21% rate to be applied to the total consideration, while allowing for the deduction of VAT paid on acquisitions.

In 6 key points

How it affects those involved

Businesses selling new watches must ensure VAT is calculated on the full sale price rather than using margin schemes, though they retain the right to deduct input VAT.

Lifecycle

2021-10-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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