Third-party services are not included in the purchase price under the second-hand goods scheme

The calculation of the profit margin under the special scheme for second-hand goods is a critical aspect for determining the VAT taxable base. A recent resolution from the Directorate General of Taxes (DGT) has specified the scope of the elements that make up the purchase price of a vehicle when this scheme is applied.

What the DGT has ruled

The query concerned whether services acquired from a company established in another Member State—such as handling services, documentation management, or auction costs—should be included in the vehicle's acquisition price for the calculation of the profit margin.

The DGT has determined that the purchase price is exclusively the total consideration paid to the transferor of the vehicle. Therefore, third-party services do not form part of said acquisition price. The administration establishes that these external costs should not increase the value of the vehicle for the purposes of the taxable base under the special scheme.

What this means for you

For vehicle trading companies operating under this scheme, this resolution offers clarity regarding the permitted cost structure. By not including these services in the purchase price, the profit margin upon which the tax rate is applied remains strictly linked to the acquisition operation of the good.

However, the exclusion of these costs from the purchase price does not prevent the company from deducting the VAT incurred on such external services, provided that the legal requirements for deductibility established in current regulations are met.

What you should do

Companies must ensure a clear separation in their accounting between the vehicle's acquisition price paid to the transferor and the costs of additional services contracted with third parties. It is essential to maintain documentation proving that handling, documentation, or auction services are independent operations from the purchase of the good to avoid errors in determining the VAT taxable base.