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V1274-17 26 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · volumen de operaciones

Asset trading and interest must be included in turnover, but dividends are excluded

A securities firm has requested clarification on whether asset trading and financial returns (interest and dividends) should be included when calculating its turnover. The Directorate-General for Tax (DGT) has ruled that asset trading constitutes regular business activity and that interest should be included if it arises from business assets; however, dividends are excluded as they do not constitute consideration for an economic activity.

The question raised

Calculation of the volume of operations carried out pursuant to Article 121 of the Tax Law. In particular, whether financial results such as interest or dividends should also be included.

The DGT's ruling

The purchase and sale of financial assets is a regular activity and must be included in the volume of operations. Financial interest shall be counted as turnover if the resources derive from the taxpayer's business assets. However, dividends must not be counted as they correspond to simple ownership of assets and, not being consideration for an economic activity, are not subject to VAT.

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