Practical cases. How are the following Spanish transactions levied? With VAT or the so called Transfer Tax and Stamp Duty?
How is the purchase of a second hand computer levied that is purchased directly from a private owner or at an online shop?
In case of purchasing the computer from the private owner, the purchase will be subject to the Transfer Tax.
Should your purchase at an online shop or in a normal shop, then Spanish VAT must be paid to the seller.
A business director sells second hand furniture that he has purchased 10 years ago.
The purchase shall not be subject to the Transfer Tax in Spain but to Spanish VAT as it is a business director who sells in the exercise of his activity.
And what if it is an educational centre that is selling?
Then no tax has to be paid, neither VAT or Transfer Tax as these operations are declared tax-exempted. (article 20, one , 24º of the Law on VAT).
And if a business director who is not a promoter sells an apartment to a private person to be used for a private dwelling?
The purchase shall not be subject to Spanish VAT as it is an VAT-exempted operation as it is the second conveyance of property. There will be a Transfer Tax even if the selling person is a business director.
The following VAT tax rates are applicable in Spain.
Distinction must be made between three tax rates. In general, we have 21%, the reduced tax rate is 10% and the super reduced rate is of 4%.
Do not hesitate to contact our expert economists and fiscal advisors of our law firm in Marbella for any issue regarding the Value Added Tax, one of the most complex tax figures of the law system in Spain.