The Vehicle Tax must be included in the VAT tax base of the sale of vehicles done by transport companies
Binding tax ruling V1332-17, issued by the Spanish General Tax Sub-directorate from May 31, 2017.
The consultant is a Spanish company dedicated to the activity of car hire without driver, it acquires vehicles whose matriculation is tax exempt from excise duty on certain means of transport (IEDMT). However, some of these vehicles are subsequently transmitted to entrepreneurs so occurs a change of the circumstances which gave rise to this exemption and the consultant must proceed to the pay such tax.
The consultant wishes to know if the IEDMT paid by the consultant and charged for this to the acquirers is included in the tax base for VAT accrued as a result of the transmissions of vehicles made by the consultant.
At this point, you should meet the provisions of article 78 of the Spanish VAT Law:
“One. The VAT tax base will be made up of the total amount of the consideration of the transactions that are subject to the same from the recipient or from third parties.
Two. In particular, they are included in the concept of consideration:
(…)
4th. Taxes and charges of any kind that fall on the same taxable transactions, except the own VAT.
Provisions of this number shall include excise duties required in relation to the goods that they are taxed operations, with the exception of excise duty on certain means of transport.
(…) “.
However, should emphasize to clarify that the quota of the IEDMT that the consultant pays before making these transmissions, is not a quota derived from such transmissions but made by the same originating vehicles purchases that were exempt from the tribute.
In this sense, should clarify that article 78.Dos.4º of the Spanish VAT Law, transcribed above, only excludes from the VAT tax base IEDMT which refers to the “taxes and charges of any kind that borne by the same transactions (…)”.
However, in this case, the IEDMT is not derived from transmission of vehicles by the consultant to other employers, but a previous delivery (the prior acquisition of vehicles by the consultant).
Therefore, on the assumption that the consultant charges the IEDMT quota to the acquirers of the vehicles, this re-charge of expenses is part of the total consideration paid by the latter in the acquisition of vehicles and should be included in the taxable base of VAT on such transmissions.
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