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V2249-20 1 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

VAT must be included in economic offers submitted to public entities

A query was raised regarding whether VAT is included in the amounts for minor supply, service, or works contracts. The DGT ruled that in economic proposals addressed to public entities, VAT is understood to be included in the total amount, although it must be itemised separately.

The question raised

The one raised in the description of the facts.

The DGT's ruling

In the supply of goods and provision of services, whether taxable or exempt, where the recipients are public entities, it is understood that the taxable persons have included VAT in their economic proposals. The tax must be charged as a separate item in the collection documents, without the total contracted amount increasing for this reason. Likewise, the specific terms and conditions may contain an express provision that the offers include both the price and the amount of the tax.

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