Frequently asked questions raised in this chapter

1. A community of owners acquires goods and services necessary for the common elements of the property, receiving invoices in their name. Can you bill the owners for the cost of this repair?

No, a community of owners under a horizontal property regime, which acquires goods and services necessary for the maintenance of common elements, belongings and services and which distributes expenses among the community members, does not carry out business activities, but is considered an end consumer. for VAT purposes .

2. Who must pay the tax in the case of a service subject to Spanish VAT that consists of the preparation of a computer program commissioned by the client in accordance with its specification carried out by a German company not established to a Spanish taxable person?

The Spanish company, since it is a passive subject for investment.

3. When is tax due if goods are sold with a suspensive condition and assuming that there have been no advance payments?

The tax is accrued when the goods are placed in the possession of the purchaser, even if ownership is not transferred.

4. Is the amount of the deposit delivered to the landlord by the tenant of a premises part of the tax base for VAT ?

The amounts of money given to the landlord as a deposit that must be returned to the tenant at the end of the contract do not form part of the tax base as they do not have the character of consideration.

5. In corrective invoices for returned merchandise. Does the tax rate in effect when the sale is made apply or the one in effect at the time the return is made?

The rate applicable to corrective invoices will be the one in force at the time of accrual of the transactions whose invoices are subject to correction.

6. Can the tax base be modified in the event of non-payment by the client of the amount owed?

As a general rule, it is not possible to modify the tax base. It is only possible when there is a declaration of bankruptcy, in accordance with the provisions of Law 22/2003, of July 9, Bankruptcy, in force since September 1, or when the credit is uncollectible in accordance with article 80.Four of the LIVA .

7. What rate is common bread taxed at?

Common bread is taxed at the reduced rate of 4 percent and includes kneaded bread, bread with hard crumb, and bread with flame or soft crumb. From January 1 to December 31, 2023, ordinary bread is taxed at a rate of 0 percent.

8. What rate is taxed on cereals used for livestock feed?

They will be taxed at the reduced rate of 4 percent provided they are considered natural products, regardless of their intended use by the purchaser (human or animal food or other purposes). From January 1 to December 31, 2023, cereals are taxed at a rate of 0 percent.

9. What tax rate is applied to the sale of school backpacks and educational puzzles?

At the general rate of 21 percent.

10. What rate is applied to the delivery of a flat that is to be used as company offices?

It will be taxed at the reduced rate of 10 percent provided that, objectively considered, it is suitable for use as a home, even if it is used for other purposes.

11. Can the 4 percent rate be applied to repair services for a passenger car used to transport a person with reduced mobility?

No, the repair services to which the 4 percent can be applied are exclusively those related to the repair of vehicles included in number 20 of Annex I of Royal Legislative Decree 339/1990.

12. What tax rate is applied to the sale of textbooks?

At the reduced rate of 4 percent.

13. What rate is taxed for admission to movie theaters?

As of July 5, 2018, they will be taxed at the reduced rate of 10 percent. Until that date, at the general rate of 21 percent.

14. What rate is applied to pads, tampons, panty liners, condoms and other non-medical contraceptives?

From 1 January 2023, they will be taxed at the reduced rate of 4 percent. Until that date, at the reduced rate of 10 percent.