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V0555-17 2 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · autoconsumo

VAT deductibility depends on whether goods supplied with capsules form part of the company's regular business activities

A coffee capsule distributor has enquired whether it can deduct VAT on goods supplied alongside its products and whether this constitutes self-consumption. The DGT clarifies that if the goods are part of its regular business activity and are supplied as part of promotions (such as a 2-for-1 offer), the transaction is onerous and VAT is deductible; however, if the goods are acquired solely for gifting purposes, there is no right to deduction.

The question raised

Deductibility of the input VAT incurred by the taxpayer in the acquisition of the goods delivered alongside the capsules. Whether a case of self-consumption occurs. Treatment of the transaction in the tax base.

The DGT's ruling

If the goods delivered form part of the company's regular course of business, the input VAT is deductible and 2x1 type promotions are considered onerous transactions with a tax base equal to the amount of the consideration. If the goods are not part of the regular course of business and are acquired solely for free delivery to customers, the VAT on their acquisition cannot be deducted. In this second case, the free delivery shall not be subject to tax because the VAT could not be previously deducted.

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