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V1544-23 5 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · comerciante minorista

Determination of retail trader status and calculation of the tax base for the equivalence surcharge

A tobacco shop seeks clarification on whether it qualifies as a retail trader and how to calculate the tax base for applying the equivalence surcharge. The DGT clarifies that status depends on the percentage of sales made to other businesses and establishes the calculation formula for products with legally fixed prices.

The question raised

Whether one will hold the status of a retail trader for Value Added Tax purposes, and the method for determining the taxable base upon which the corresponding equivalence surcharge must be applied.

The DGT's ruling

One is not considered a retail trader if sales to entrepreneurs or professionals exceed 20% of total annual sales, in which case one must transition to the general regime the following year. For products with legally fixed prices, the taxable base for applying VAT and the equivalence surcharge is calculated using the formula: 100 x retail price (VAT included) / (100 + tax rate). The trader must charge the retail price plus the calculated surcharge, rather than absorbing it.

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