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V1569-20 25 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

VAT and equivalence surcharge must be applied to the taxable base calculated from the retail sale price

A tobacco retailer under the general tax regime seeks clarification on how to determine the taxable base for passing on VAT and the equivalence surcharge to customers under the special tax regime. The DGT clarifies that the retailer must charge the retail sale price (including VAT) plus the equivalence surcharge calculated on the corresponding taxable base.

The question raised

Method for determining the taxable base upon which both Value Added Tax and the corresponding equivalence surcharge must be applied.

The DGT's ruling

When retail prices are legally fixed and include taxes, 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 taxable person must charge the customer the retail price including VAT and, in addition, the equivalence surcharge calculated according to said formula.

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