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V0804-18 22 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · perfeccionamiento activo

Advance payments for boat repair services linked to inward processing are exempt from VAT

A boat repair company enquired whether advance payments received before the arrival of vessels were subject to VAT. The DGT ruled that if the final service is exempt due to its link to the inward processing regime, the advance payment shall also be exempt.

The question raised

Taxation of advance payments received from customers.

The DGT's ruling

Repair services for imported vessels linked to the inward processing regime are exempt from VAT pursuant to Article 24.3.c) of Law 37/1992. Therefore, the collection of advance payments for such services maintains the exemption, even if the tax accrual occurs at the time of collection due to the requirement for payment on account. The company must issue an invoice documenting said payment and indicating the corresponding exemption.

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