BASQUE COUNTRY AND NAVARRA: VAT on commercial offers

If your company submits an offer to a client and does not indicate anything regarding VAT, the following rules apply:

If the recipient is another company

The general rule is that the tax must be added to the transaction and passed on to the agreed price.

If the recipient is an individual

VAT is considered included in the offered price, and you must deduct it from your fees and pay it to the tax authorities. Keep in mind that the regulations protect consumers and require companies to inform them clearly and understandably of the total price of the service, including taxes.

If the recipient is a Public Administration

The rule is similar to that indicated for individuals: you must apply the so-called "certain price rule." According to this rule, it is considered that the offer made to the Administration already includes VAT (even if it is not explicitly stated in the contract). Furthermore, if you submit an offer with VAT, but calculated with an incorrect tax rate, the certain price of the contract cannot vary. Therefore, you must issue your invoices with the correct rate, but without altering the initially offered certain price.

Indicate the applicable VAT in all your commercial offers. Our professionals will guide you on how to do this to avoid disputes with the recipient, especially if it is an individual or a Public Administration.