VAT SPECIAL ARRANGEMENT FOR SECOND HAND GOODS, ANTIQUES, WORKS OF ART AND COLLECTOR’S ITEMS.

It is a voluntary VAT arrangement applicable to resellers, characterized by the form of calculation of the tax base.

It admits two modalities of tax base calculation: operation by operation and by global margin.

OPERATION BY OPERATION

In this case, taxpayers can choose, in each operation, between the special regime or the general one.

If they choose the special regime, they calculate the tax base as follows:

GLOBAL MARGIN           

If the taxpayer opts for this modality, the tax base is calculated through an inventory, as follows:

If the result is negative, the difference is added to the purchases oft he last period; if the result is positive, it is added to the sales of the last period.

Invoices documenting this kind of deliveries cannot separate the VAT quota, for this is NOT DEDUCTIBLE for the client. If the delivery is destinated to another EU country, the invoice must state that the operation has been taxed in accordance to articles 312 to 315 of the Directive 2006/112/EU.

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SPECIAL TAXATION SYSTEM FOR USED GOODS

Spanish V.A.T. system for used goods is characterized for its particular way of determining V.A.T. tax base. Its application is voluntary and it supports two variants:

 

CALCULATION OF TAX BASE OPERATION BY OPERATION

In this case, the taxpayer can choose whether to apply the special V.A.T. system for USED GOODS or the GENERAL one in each operation.

1.      If he decides to apply the special system:

 

a.      OUTPUT VAT is determined on the basis of the operation profit margin

 

( (transmission price + VAT) – (purchase price + VAT) ) x 100           ________________________________________________                                               (100 + applicable tax rate)

 

b.      INPUT VAT is not deductible. Notwithstanding, input VAT of fixed, indirect costs (such as telephone or rentals) is deductible.

 

2.      Without prior communication to the Spanish Inland Revenue, the taxpayer may not apply the special system to an specific operation. In this case:

 

a.      OUTPUT VAT is determined on the basis of sales price

b.      INPUT VAT is deductible

CALCULATION OF VAT ON THE BASIS OF GLOBAL PROFIT MARGIN

This variant is only applicable to certain goods, such as stamps, stamp effects, notes and coins of philatelic or numismatic interest, magnetic tapes, books or magazines.  In this case, VAT is determined on the basis of the profit margin of all the operations within the period

(Regulation: articles 135-139 of VAT Law 37/1992, 28.12.1992, 50-51 of RDL 1624/1992 and 6 of RD 1619/2012

 

 

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