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V2296-17 8 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Recharged travel expenses form part of the taxable base and are subject to VAT at the main activity rate

An auditing firm inquired whether reimbursable travel expenses could be treated as disbursements (suplidos) to avoid including them in the taxable base. The DGT ruled that, as they do not meet the requirements for disbursements, these expenses must be included in the taxable base of the auditing services.

The question raised

VAT treatment regarding the invoicing of such reimbursable expenses.

The DGT's ruling

For an expense to be considered a disbursement and not be included in the taxable base, it must be paid on behalf of and for the account of the client through invoices issued in the client's name, under express mandate and for an amount identical to the expense incurred. In this case, the travel expenses incurred by the taxpayer and passed on to the client form part of the taxable base for the audit services. Therefore, VAT must be charged at the rate corresponding to said services, which is 21 percent.

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