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V0552-18 26 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Compensation for theft of goods in transit is not subject to VAT

A company inquired whether the compensation received for the theft of goods during transport was subject to VAT and whether it could deduct the tax. The DGT responds that the compensation is not a consideration and that the theft does not constitute a supply of goods.

The question raised

Question raised: Liability for Value Added Tax on the supply made to the carrier and the tax deduction regime.

The DGT's ruling

Compensation for claims (loss or damage) of transported goods is not a service provision distinct from transport and does not form part of its taxable base. The theft of goods is not a supply of goods subject to VAT because there is no economic consideration nor a transfer of powers of disposal to the perpetrator of the theft. The right to deduct input VAT is not limited by the loss of goods due to theft, provided that the legal requirements are met.

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