Suppliers of retailers must pass on the equivalence surcharge on goods without transformation

The application of the simplified direct estimation regime, known as the equivalence regime, generates specific obligations for both suppliers and retail traders. A recent binding ruling from the Dirección General de Tributos (DGT) delimits the scope of passing on this surcharge in commercial operations.

What the DGT has resolved

The advisory body has determined that the collection of the equivalence surcharge occurs through the pass-on that the supplier must perform in the delivery of movable goods without transformation. The criteria establish that the supplier is obliged to include said surcharge in the sale price when the recipient is a retail trader subject to this regime.

However, the resolution specifies that the retail trader themselves must assume responsibility for the self-assessment and payment of the tax and the surcharge in two specific scenarios:

• In intra-Community acquisitions of goods.
• When they are the recipient of reverse charge operations.

Furthermore, the DGT clarifies that the installation of operating systems on equipment does not constitute an excepted operation of transformation. Therefore, this activity is taxed under the general Value Added Tax (IVA) regime and not under the equivalence regime.

What it means for you

If you are a supplier of goods, you must correctly identify whether your client is a retail trader subject to the equivalence regime in order to apply the corresponding surcharge on the sale of goods without transformation. An error in this distinction could lead to incorrect tax settlement.

If you are a retail trader, you must keep in mind that, although most of your purchases include the surcharge passed on by your suppliers, there are operations in which the tax burden falls directly on you through self-assessment, especially in the intra-Community context.

What should be done

It is necessary to review the nature of sales and purchase operations to ensure that the treatment of IVA and the equivalence surcharge is appropriate. In the case of activities involving technical services, such as software installation, the general regime must be applied, as these are not considered operations of goods without transformation.

Given the complexity of the interaction between the general regime and the equivalence regime, it is fundamental to assess the specific situation of each commercial activity to avoid contingencies with the Tax Administration.