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V0041-14 14 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo de bienes

Free product deliveries are deemed self-consumption and must be invoiced even if exempt

A company has requested clarification regarding the taxation of products delivered free of charge to customers in Portugal, the Canary Islands, Ceuta, and Melilla. The DGT has determined that these deliveries constitute self-consumption and that invoices must be issued, even if the transactions are exempt from VAT.

The question raised

Taxation of self-consumption when said products are sent to Portugal, the Canary Islands, Ceuta, and Melilla.

The DGT's ruling

The free delivery of goods that form part of the business assets is considered self-consumption of goods. Deliveries to Portugal are exempt if the acquirer is an entrepreneur or professional identified in another Member State. Deliveries to the Canary Islands, Ceuta, and Melilla are subject and exempt operations. In all cases, the taxable person must issue an invoice for the totality of the operations.

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