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V3104-21 13 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · base imponible

Recharged expenses in an administrative concession may include VAT if contractually agreed

A company sought clarification on whether maintenance expenses for a concession, recharged by a provider, should include the VAT incurred by said provider. The DGT ruled that, as these are ancillary services to the main provision, they are considered a single transaction, and the taxable base depends on the terms agreed upon in the contract.

The question raised

Question posed: Whether the Value Added Tax incurred by the supplier in relation to the maintenance of the concession must be understood as included in the concepts subject to re-invoicing and whether such inclusion depends on whether the supplier can fully deduct the tax.

The DGT's ruling

Re-invoiced expenses that are ancillary to a principal supply receive the same tax treatment as the latter. The taxable base for re-invoicing is determined by the will of the parties and the provisions of the contract, and may include the VAT incurred by the supplier if so agreed. If an amount exceeding the actual expense (including deductible VAT) is passed on, such excess amount also forms part of the taxable base subject to taxation.

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