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V0599-17 8 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

Workshops ineligible for equivalence surcharge regime as they constitute a provision of services

A consultant starting a retail textile business inquired whether their workshops could opt for the equivalence surcharge regime. The DGT ruled that the equivalence surcharge applies only to the sale of untransformed goods; therefore, workshops must tax under the general regime.

The question raised

Question posed: Applicable regime to said workshops.

The DGT's ruling

The equivalence surcharge regime applies to retail traders who make deliveries of goods without having subjected them to manufacturing or transformation processes. Workshop activities cannot be subject to this special regime as they constitute a provision of services. However, the retail trade of goods in their original state may apply the equivalence surcharge if legal requirements are met, being considered a differentiated sector.

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What is published here, applied to a company or a specific case. The first meeting is free.

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