BASQUE COUNTRY AND NAVARRA: Attention to self-consumption

When is there self-consumption?

There is self-consumption of goods when a company or an entrepreneur transfers goods from their activity to third parties free of charge, or when an entrepreneur transfers goods from their business assets to their personal assets.

How does it affect VAT?

In most cases, even if the company or the entrepreneur does not charge anything for the delivery made, they are required to pay the applicable VAT to the tax authorities on those transfers. To do this, they must issue an invoice in the name of the recipient and pass on the corresponding VAT.

And what is the taxable base on which it must be passed on?

It is as follows:

• If the goods have not been subject to transformation, the acquisition cost.
• If they have undergone transformation, the acquisition cost plus the transformation costs, including personnel expenses.

Please note that if the value of the goods has been altered due to use, deterioration, or obsolescence, the taxable base must be adjusted considering those circumstances.

Our professionals will study your case and assist you with your VAT declaration.