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V2641-14 7 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Payments made on behalf of the client are excluded from the VAT taxable amount

A query was raised regarding whether amounts paid by dealerships to a management company to reimburse expenses incurred by the latter on their behalf should be subject to VAT. The DGT ruled that, provided the requirements for disbursements (suplidos) are met, these amounts do not form part of the taxable amount for the management company's services.

The question raised

Question posed: Subjectivity of the payments made by the concessionaire.

The DGT's ruling

In order for the sums paid not to be included in the taxable base, they must be paid on behalf of and for the account of the client, through express mandate and with due justification of the amount. In this case, the invoice for the expense must be issued to the charge of the recipient (the client). If these requirements are met, the amounts are not taxed as a service provided by the manager, but rather by their own nature, with the client bearing the VAT and being able to deduct it if they meet the legal requirements.

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