In the supply of mobile phones, affected by the reverse charge rule, the cost of transporting the same is dealt with together with that supply of goods
Binding tax ruling V1248-17, issued by the Spanish General Tax Sub-directorate from May 31, 2017.
A company dedicated to the sale of mobile phones, consoles video games, laptops and digital tablets to reseller companies, includes in the bill to the clients the cost of transportation used in the supply of such goods.
This company wants to know if in the invoice issued must include a VAT quota for the cost of the recharged transport or if it should apply to the transport the same reverse charge rule, as occurs with the supply of such goods to the resellers.
At this point we would like to mention that the reverse charge rule applies to the supply of such goods, this is included in article 84.Uno.2nd.g), of the Spanish VAT Law, that says shall be considered as taxable persons:
“Entrepreneurs or professionals for whom the transactions subject to VAT are carried out in the cases listed below:”
(…)
In the case of supplies of the following products as defined in the tenth paragraph of the annex to this law:
-(…)
-Mobile phones.
-Consoles video games, laptops and digital tablets.
The provisions in these two last indents only applies when the recipient is:
A businessman or professional reseller of these goods, either that is the amount of the supply.
(…)”
Once clarified this, regarding the re-charge by the company to its customers for the cost of the transport used for the put at disposal of the electronic devices object of these transactions, article 78 of the Spanish VAT Law stipulates that:
“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, shall be included in the concept of consideration:
1st Costs of commissions, shipping and transportation, insurance, premiums of anticipated benefits and any other cash credit in favor of who make the supply or pay service, derivative of the main provision or the accessories thereto.
(…).”
In this regard, VAT taxable base of the supplies of goods shall include in addition to the consideration perceived by the electronic devices, the cost of the transport recharged.
The Company should not treat separately the supply of electronic devices and the transport cost to the extent that these transport costs are part of the total consideration of the supply which is applicable the reverse charge rule, and not must, therefore, charge any VAT quota.
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