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V1052-20 24 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tracto sucesivo

The 4% rate for home care services applies to the invoice following the change in conditions

A query was raised regarding whether a new 4% rate should be applied pro rata or on the accrual date when the amount of a linked economic benefit changes mid-month. The Directorate General for Tax (DGT) ruled that the rate applies upon the issuance of the subsequent invoice.

The question raised

From when is the 4 percent tax rate applicable. Whether it must be prorated from the middle of the month, or whether the new rate applies to the date of accrual, i.e., the 1st day of the month.

The DGT's ruling

In operations of successive performance, such as home care services, the accrual occurs when the portion of the price comprising each payment becomes due. Since the exigibility of the consideration occurs at the beginning of the month with the invoice, the new tax rate of 4% shall be applicable when the next invoice is issued following the change in conditions.

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