Back to index
V2709-23 6 October 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · suplidos

Recharged supplies may be treated as disbursements or part of a single supply depending on their nature

A company providing equipped kitchens has requested clarification on whether the recharging of utilities (water, electricity, gas) constitutes a disbursement or how it should be taxed. The DGT explains that it depends on whether the company acts on behalf of the client or if the expense is ancillary to the main activity.

The question raised

Tax base of the Value Added Tax for said rebilling and, where applicable, whether it would be considered a disbursement.

The DGT's ruling

For an expense to be considered a disbursement and not subject to VAT, it must be paid on behalf of and for the account of the client through an express mandate, with the invoice issued in the client's name and without the intermediary deducting the tax. If it is a rebilling of an independent expense, it constitutes a provision of services subject to 21%. If the expense is ancillary to a principal provision (such as the leasing of equipped kitchens), it receives the same tax treatment as said principal operation.

Book your free first meeting