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V1503-17 13 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · suplidos

Re-invoicing of maintenance and utility costs is not a disbursement and must be taxed at 21% VAT

A community of garage lessees has enquired whether the re-invoicing of expenses (property tax, water, electricity, etc.) by the concessionaire company can be considered a disbursement. The DGT has ruled that it does not meet the requirements to be classified as a disbursement and that the operation constitutes a provision of services subject to VAT.

The question raised

Taxable base of said rebilling and, where applicable, whether it would be considered a disbursement.

The DGT's ruling

The rebilling of expenses is not considered disbursements because the requirements of being paid on behalf of and for the account of the client through an invoice issued directly to them are not met. Therefore, the company must charge VAT at the general rate of 21% on the taxable base. The taxable base shall be determined according to the agreement between the parties or as established in the bylaws, including or excluding the VAT of the original expenses according to said agreement.

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