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V1887-19 18 July 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

VAT accrual on purchase commissions occurs when goods are made available to the commission agent

A wholesale company acting as a purchase commission agent on its own behalf has requested clarification on when VAT must accrue for deliveries to its retail clients. The DGT rules that accrual occurs when manufacturers deliver the goods to the wholesaler, unless advance payments have been made.

The question raised

Accrual of Value Added Tax on the deliveries from the taxpayer to retailers.

The DGT's ruling

In the transfers of goods between a commission agent and a principal carried out by the commission agent in its own name, the tax accrues when the goods are made available to the commission agent. If advance payments exist prior to the occurrence of the taxable event, the accrual shall take place at the time of the total or partial collection of the amounts received. This criterion applies both to customers belonging to purchasing groups and to those that do not.

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