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V0919-22 28 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Manufacturers may reduce their VAT taxable base through discounts refunded directly to the end customer

A tyre manufacturer inquired whether it could reduce its VAT taxable base following a direct refund campaign targeting end consumers. The DGT ruled that the manufacturer may reduce the taxable base of its sales to distributors by the discount amount, excluding the portion of VAT applicable to the distributor's sale to the customer.

The question raised

Issue raised: VAT treatment of the discount made by the manufacturer.

The DGT's ruling

The manufacturer may reduce the taxable base of its supplies to distributors by the amount of the discount granted to the end customer, excluding the portion of said discount corresponding to the VAT amount of the sale from the distributor to the consumer. This reduction requires the issuance of a credit note and proof of the actual reimbursement. The discount amount is understood to include VAT, and the manufacturer shall recover the VAT through the reduction of the VAT accrued in its tax return.

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