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V0636-14 10 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Franchise granting and machinery delivery are two distinct VAT transactions, not a single supply

A company sought clarification on whether granting a franchise system alongside the delivery of necessary machinery constituted a single transaction or multiple ones. The DGT determined that these are two separate operations: a service provision for the assignment of rights and a supply of goods for the equipment.

The question raised

Deductibility of the tax paid.

The DGT's ruling

The granting of an exploitation right through a franchise is a provision of services. The delivery of materials, furniture, and machinery constitutes an independent supply of goods operation, as it is not a means to enjoy the main service, but an end in itself. Therefore, they must be assessed separately and not as a single provision.

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