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V2336-16 26 May 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Agreements between franchisors and suppliers to refer customers may constitute services subject to VAT

A franchisor has inquired whether suppliers can issue credit notes for volume rebates without having previously invoiced the purchase. The DGT indicates that agreements where the franchisor undertakes to refer customers in exchange for consideration may constitute a service subject to VAT.

The question raised

Possibility for suppliers to issue a corrective invoice in respect of a volume rebate on purchases to the taxpayer, even if no prior invoice for the purchase of these products has been received.

The DGT's ruling

Agreements between a franchisor and the suppliers of its franchisees, involving an obligation to do or not to do, may constitute transactions subject to VAT. If the franchisor undertakes to refer clients to an entrepreneur and receives consideration for doing so, it constitutes a provision of services subject to the tax, regardless of whether the amount is determined based on the purchases made by the franchisees. The accrual shall occur when the transaction is provided, executed, or performed.

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