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V1403-18 28 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tracto sucesivo

Accrual of continuous supply services occurs at the time they become due

A taxpayer queried when VAT accrues for strategy coordination, information supply, and marketing services provided to a Swiss company. The DGT ruled that coordination and information supply services constitute a continuous supply, whereas marketing services do not.

The question raised

Question raised: Accrual date of the described services subject to Value Added Tax.

The DGT's ruling

International strategy coordination and sales information supply services are operations of successive performance, therefore the accrual occurs when each part of the price becomes due. Promotion, marketing, and merchandising initiatives are not considered to be of successive performance, accruing when they are provided, executed, or carried out. In both cases, if there are advance payments, the tax accrues at the time of collection.

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