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V0965-20 21 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Recharging traffic fines to customers is subject to VAT

A transport company enquired whether recharging overweight fines to its customers was subject to VAT. The DGT ruled that it is, as these amounts form part of the consideration for the business activity.

The question raised

Whether the collection of fines by the applicant from its respective clients is subject to Value Added Tax.

The DGT's ruling

The rebilling of expenses derived from fines is subject to VAT. The total amount of the consideration includes any effective credit in favor of the person performing the transaction, derived from both the principal and the ancillary services. Therefore, the company must charge the tax to the recipient at the general rate of 21 percent.

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