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VAT practical manual 2022.

What is VAT?

VAT is a tax of indirect nature because it falls on an indirect manifestation of economic capacity, specifically, the consumption of goods and services.

This tax taxes three different types of operations, namely:

  1. Deliveries of goods and provision of services carried out by businesspeople and professionals in the course of their activities.

  2. Intra-Community acquisitions of goods made by entrepreneurs, professionals or legal entities that do not act as entrepreneurs or professionals, although they may sometimes be made by private individuals (for example, intra-Community acquisition of new means of transport).

  3. Imports of goods, whoever carries them out, whether a businessman, professional or individual.