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V2531-23 21 September 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · suplidos

Recharging of expenses may be subject to 21% VAT or follow the treatment of the principal supply

A foundation has enquired whether the recharging of utilities and common expenses for a shared property is subject to VAT. The DGT explains that this depends on whether the expenses are disbursements, independent recharges, or accessory supplies to a principal supply.

The question raised

Liability and, where applicable, the rate of Value Added Tax applicable to the rebilling of expenses carried out by the consulting entity.

The DGT's ruling

If the expenses are paid on behalf of another (paid in the name and on account of the client with express mandate), they are not subject to VAT. If it is a rebilling of an independent expense, it is a provision of services subject to the general rate of 21%. If the expense is ancillary to a principal provision, it will receive the same tax treatment as said provision.

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