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