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V5456-26 7 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

VAT on the supply of medicines is fully due upon making the goods available

A company has requested clarification on when VAT should be accrued for gene therapy medicines where payment is made in instalments based on specific milestones. The Directorate-General for Taxes (DGT) has determined that this constitutes a supply of goods rather than a continuous service operation; therefore, the tax becomes fully due at the time the product is delivered.

The question raised

Accrual of Value Added Tax on the supply of the aforementioned medicines.

The DGT's ruling

The accrual of tax on the supply of goods occurs upon making them available to the acquirer, regardless of whether payment is deferred. If part of the price is not collected due to failure to meet performance milestones, the tax base must be modified. The rectification of tax amounts must be carried out by means of a credit note or through the self-assessment rectification procedure.

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