JOHN CARLOS I,

KING OF SPAIN

To all who present it and understand,

Sabed: That the General Courts have approved and I come to sanction the following Law:

I. FUNDAMENTALS OF THE INTRODUCTION OF VALUE ADDED TAX

The reform of the Spanish indirect taxation is demanded not only by the imperatives of our future accession to the European Economic Community, but also by objective reasons of unquestionable relevance.

The central figure of the Spanish indirect tax system, the General Tax on the Traffic of Enterprises, is a cascading tribute that taxes the total amount of consideration in the transactions of goods or services that are carried out at each stage of the production or distribution process thereof. In the absence of any deductions or compensation from the tax burdens incurred in the previous stages, their impact on the final consumer is increased as the number of transactions in the production process increases.

The accused lack of internal neutrality of the General Tax on the Traffic of Enterprises constitutes an important factor of interference in the correct allocation of the economic resources that impels to the use of cycles short production, and business concentration.

Since the prism of foreign trade, the lack of neutrality and transparency of the cascading taxes is a very important factor that has determined the disappearance of this tax modality in the territorial area of the European Economic Community. Since the precise knowledge of the tax burden borne by the exported products is not possible, the compensation to exporters is made with frequent errors, which may, as the case may be, result in a lack of compensation to such exporters, or the establishment of any and no export premiums, with the consequent risk of the possible demand for countervailing duties on Spanish exports.

Despite its certification, the General Tax on the Trafficking of Companies is not a general one. Important productive sectors and very important phases of the production and distribution of goods are not taxed by this tax.

The lack of internal neutrality and its poor generality contribute to a serious deterioration in the collection capacity of the tax.

The tax on cascading sales, because it lacks the mechanism that allows the deduction of the tax quotas supported in the previous phases of the production process, has an impact on the goods of equipment. acquired by the Company, which are doubly taxed in its acquisition and in the disposal of the final products of the process, when integrated as cost in the final price of the goods or services submitted to the Tax.

Finally, it is appropriate to stress that the Spanish indirect tax system is composed of a notoriously complex set of taxes, the difficulties of interpretation and application of which contribute to increasing The so-called indirect tax pressure.

The new central figure of indirect Spanish taxation will be the Value Added Tax.

Value Added Tax is a neutral tribute, both in the internal and international context. Its impact on the consumer is always the same, whatever the length and circumstances of the processes of production or distribution of goods and services.

Value Added Tax mechanics allow you to quantify exactly the tax burden borne by each product at any stage of your production process.

The functioning of the border adjustments is not, at all, interfered with by VAT, which fully exonerates the transactions taking place in the exporting process and subject to imports at the same rates. Tax and grant them the same tax benefits in place within each country.

The absolute neutrality and transparency of VAT, in respect of foreign trade, justify their choice as a general tribute to the European Economic Community in order to guarantee fair play in transactions

The European Economic Community has established rules for the harmonization of indirect taxes, which are binding on the Member States, which make up the scope of application of the tax. generality.

The neutrality and generality of the Value Added Tax determine its high collection capacity, which will allow significant increases in public revenues, without producing a significant increase in public revenue, if it is considered appropriate in the future. distortions in the functioning of the economy.

In short, the said tribute will be a suitable instrument to contribute effectively to the achievement of the economic policy objectives to be set at each juncture.

In this regard it seems appropriate to highlight the positive impact of VAT on business investment. In fact, the entry into force of VAT for the first time in France, in 1954, was motivated by the need to encourage business investment in an era of investor-based trading. The special ability of VAT to encourage investment is one of the factors that have contributed the most to the rapid and somewhat surprising expansion of this tribute in more than thirty countries with a wide range of socio-economic characteristics.

Value Added Tax is set up as the basic tribute of indirect Spanish taxation. It will absorb all the currently established taxes on the business figures of the companies, determining the disappearance of the same and the current mechanisms of fiscal adjustments at the border.

Around the new axis of indirect taxation will be reordered the Spanish indirect tax system, in which the Tax on Proprietary Transmissions and Documented Legal Acts will remain as the most important figures. Special Taxes and the Rights of the Customs Tariff.

II. OBJECTIVE SCOPE OF APPLICATION

Although the Value Added Tax is a tribute of an indirect nature that affects consumption, it is fundamentally demanded, in the case of transactions, deliveries of goods and services, made in the development of a business or professional activity, while maintaining its neutrality in international trade makes it necessary to tax the imports of goods irrespective of the condition of the importer, i.e. whether they are are made by employers or professionals as if they are carried out by private individuals.

Article 4 of the Law determines the concept of employer or professional in coherence with the fourth of the Sixth Council Directive of the European Communities of 17 May 1977 and 18 of Law 44/1978 of 8 September 1977 on the Tax on the Income of Physical Persons.

What characterizes the business or professional activity, according to that article of the Law, is the realization of an economic activity with habituality and self-employed.

The note of habituality refers subjectively to the employer or professional, but not objectively, to the transactions subject to the Value Added Tax, which, in contrast to the current General Tax on the Traffic of the Companies, subject to full taxation of transactions of economic content, carried out by employers or professionals, whether typical and customary as if they are merely occasional.

In line with this, Article 3 of the Law, in conjunction with Articles 6 and 7, considers that the entire supply of goods and services carried out in the development of an activity is subject to the tax. (a) business or professional carried out for consideration, and even certain operations carried out in a lucrative manner, and others which do not involve genuine transfers to third parties, such as transfers of assets from the business or professional assets of the taxable persons, or the total or partial application of the same goods for the use or consumption of the taxpayer himself, regardless of his business or professional activity, and the mere affections of goods integrated in the business or professional assets to another sector of differentiated economic activity, the (a) a deduction scheme is independent, or a different use as an investment property. However, taking into account the provisions of Article 5 (6) and (7) of the Sixth Community Directive, the self-consumption of goods shall not constitute an operation subject to the tax where the taxable person has not made the total deduction or partial of the tax incurred when making the acquisition or import of the goods to which it relates or its component elements.

In order not to distort the functioning of business or professional activities Article 5 of the Act establishes other assumptions of operations not subject to the Tax, such as the global transmission of a property (a) business or professional and the supply of free samples or advertising objects of low value for the promotion of business or professional activities, all in accordance with Article 5 (8) and (6) of the Sixth Directive Community legislation.

In accordance with Article 4 (5) of the Sixth Community Directive, the activities which the public authorities carry out under public law are not subject to the tax, except where the non-subjection is liable to cause distortions in the functioning of the market mechanisms, in particular in the case of the activities described in Annex D to the same Directive. The specific criterion used to determine these activities is based on the tax nature of the consideration to be paid.

III. SPACE AREA

The scope of the tax is limited to the Spanish mainland and the Balearic Islands, not extending to the Canary Islands, Ceuta or Melilla.

The non-application of the tax in the Canary Islands, Ceuta and Melilla makes it essential to establish the mechanisms characteristic of the tax adjustments at the border in the transactions carried out between these territories, by requirements of the nature of the tax and of the harmonisation rules in force in the European Economic Community.

Historical and geographical reasons, derived from the special economic characteristics of these territories, justify the obvious technical complications, which the territorial differentiation described above introduces into the Tax rules.

As with respect to other basic taxes, it is available that in the other Autonomous Communities the tax will be required in accordance with the provisions of this Law and the regulatory norms of the regimes of agreement, or, where appropriate, the transfer of taxes applicable to it.

IV. THE TAXABLE FACT

Following the precedents of Comparative Law and the Sixth Directive of the European Economic Community, the Law distinguishes three categories of taxable facts. The first two, supplies of goods and services, correspond exclusively to operations carried out in the development of a business or professional activity. The third, imports of goods, is independent of the condition of the subject that performs them.

The transmission of the power of disposal on body goods is considered to be the supply of goods.

According to the inspiring principles of the Community harmonisation rules are included among the deliveries of goods not only the operations whose translative effectiveness is evident, but also other of economic content analogue.

In line with the Directive of the Council of the European Communities of 17 July 1969 on indirect taxes on capital contributions, the Law lays down in Article 6 (2) of the Treaty establishing the European Community fifth, that the subject to VAT of the contributions of goods to companies and communities of goods shall be effected without prejudice to the taxation that comes, in accordance with the rules of the Tax on Inheritance Transfers and Acts Legal Documented, concept "documented legal acts" and "corporate operations".

Article 6 cited in the Law conceptualizes the so-called self-consumption of goods in its various forms: Transmissions for profit, transfers to the personal patrimony or the personal consumption of the taxable person and the affectation of assets from the business or professional assets to another distinct sector of their economic activity or their specific use as investment goods.

The concept of service delivery has a residual character, being determined in the Law with a great breadth that transcends its mere legal meaning. Provision of services for the purposes of the Tax is any operation carried out in the development of a business or professional activity that does not have the consideration of the delivery of goods in accordance with Article 6 of the Law.

Later, Article 7 makes a non-limiting description of some of the most relevant categories of service capabilities.

V. EXEMPTIONS

The establishment of exemptions in Value Added Tax is a disturbing factor in the functioning of the tax and its effects on the general economic system.

However, the Sixth Directive of the Council of the European Communities considers it appropriate to establish a common list of exemptions which, in accordance with the internal legislation of all Member States, ensures a equitable in the contribution of all of them to the Community budget, while ensuring the external neutrality of the tax.

The adoption of the common list of exemptions laid down in the Community harmonisation rules, which is an essential requirement for the accession of Spain to the European Economic Community, will entail a major change in the tax benefit system, currently in force in the General Tax on the Traffic of Enterprises.

The exemptions introduced in the Act affect internal and external traffic.

Article 8 of the Act regulates exemptions in internal operations, in accordance with Article 13 of the Sixth Community Directive.

The current exemption of the state services of Correos and Telegrafos and of those provided by the Spanish National Telephone Company will be limited to the postal public services, without prejudice to the effects that this could have. to produce in the contractual relations existing between the State and the Company.

The scope of the health measures is one of the sectors which will determine the recognition of wider tax benefits in the value added tax, although both Article 13 of the Sixth Directive Community as the 8 of the Law limit the aforementioned benefits to human health, without extending them to animal health.

there is no doubt that there is a need for a more effective approach to the social and economic aspects of the social and economic aspects of the social and economic situation. educational activities, culture and the practice of sport or physical education, the scope and limits of which are strictly in line with the harmonisation rules in force in the EEC.

Although the subjection to the tax is produced whatever the purposes or results pursued in the business or professional activity or in each operation in particular, specific exemptions are established in favour of certain Non-profit entities.

Technical grounds justify the tax benefits established in favour of the Entities whose members exclusively carry out transactions exempt from the tax and those affecting certain supplies of goods, the acquisition would not have determined the right to deduct in favour of the taxable person.

Notwithstanding their questionable objective basis, the same reasons for Community tax harmonisation determine the establishment of a wide range of exemptions for insurance and financial transactions.

The peculiar character of the real estate and the specialties of its legal traffic justify the opportunity to implement specialized specialties in the Value Added Tax, which has an impact on these goods and operations.

Following the criteria set out in Article 13 (B) (h) of the Sixth Directive, the Law exempts deliveries of land which are not immediately suitable for construction. In order to avoid the breakdown of the chain of deductions in the intermediate stages of the building production process, it is available that the exemption will not be extended to land where there are construction or construction sites. first transmissions of urbanised land.

The same purpose-to impose exclusively the production process of the buildings-determines the convenience of exonerating the second and subsequent transmissions of buildings, whose construction process it has concluded, in accordance with Article 13 (B) (g) of the Sixth Directive.

Likewise, in accordance with the normative criteria contained in Article 13 (B), (b) of the Sixth Directive, the exemption of leases, qualified as services for the purposes of the tax, relating to land and dwellings, without prejudice to the exceptions expressly mentioned, among which those relating to leasing with an option to purchase are based on the desirability of not distorting the functioning of such economic activity.

Since a relevant part of gambling is directly exploited by public bodies under monopoly and the activities of this nature operated by private individuals are ordinarily subject to a tax tax, economic and technical reasons justify their tax exemption, to avoid double taxation and to reduce indirect tax pressure.

The exemption of the deliveries of artistic objects made by their authors is in line with the guidelines of the European Economic Community, which are set out in Article 2 (2) of the Seventh Proposal. Directive, presented by the Commission to the Council of the European Communities on 11 January 1978.

Article 8 (2) of the Law defines the concept of social entities or establishments, in accordance with Article 13 (2) of the Sixth Community Directive.

The exemptions from the supply of goods for export and the granting to the taxable person of the right to recover the tax burden borne on the acquisitions of goods and services used in such operations, constitutes a part of the mechanism that guarantees the neutrality of the tax in international transactions. The abovementioned tax benefits are governed by Article 9 of the Law, in which the scope of the exemption is extended to include also the provision of ancillary services directly related to exports of goods. The services of intermediaries shall also be exempt when they are involved in the operations described in Article 9 or in those operations outside the territorial scope of application of the tax.

In accordance with the provisions of Article 15 (5) et seq. of the Sixth Community Directive, Article 10 of the Law recognises the exemption of a number of transactions which are considered to be equivalent to exports, such as as deliveries and certain services relating to the vessels and aircraft used in international shipping, deliveries of victualling products for the said vessels and aircraft and the services provided for address the direct needs of such means of transport.

And in Article 11 of the Law, which is adapted to the Community legislation contained in Article 16 of the Sixth Directive, the supply of goods to free zones, free warehouses and warehouses is declared exempt. customs, as well as the provision of services related to such deliveries and the operations relating to the goods and services in the areas indicated. The fact that the goods entered in these areas are finally destined abroad has motivated the opportunity to bring forward the benefit of the exemption, and the consequent return of the internal taxes, to a moment before the of the effective export.

VI. PLACE OF CONDUCT OF THE TAXABLE EVENT

The location of the taxable event in the international context is of great importance in order to determine the tax liability.

The directives of the European Economic Community have laid down detailed rules governing the criteria for the location of the taxable event, which is necessary for the Member States to apply in order to avoid possible cases of double taxation or non-VAT at Community level.

The Law establishes rules for locating the taxable fact to the exclusive effects of determining the territorial effectiveness of the tax in the international context and, where appropriate, relations with the Canary Islands, Ceuta and Melilla. Those rules do not apply to the determination of the management powers of the Autonomous Communities.

VII. ACCRUAL OF TAX

The criteria for determining the accrual of the tax on domestic transactions are partially similar to those currently in force in the General Tax on the Trafficking of Enterprises, the foundation of which has been endorsed for a long time. experience.

As a general rule, the tax shall be payable at the time when the benefits are made which constitute the content of the transactions subject to taxation.

The very nature of the following operations makes it necessary to implement an alternative accrual criterion: The time when the price for each partial benefit is payable.

In addition, when the transactions subject to lien result in advance payments on account of the future benefit, the accrual shall be brought forward at the time of recovery for the amounts actually received.

VIII. TAXABLE PERSON

In accordance with Article 21 of the Sixth Community Directive, persons or entities carrying out the supplies of goods and services shall be obliged to pay the tax on domestic transactions. services subject to the same.

However, as the Value Added Tax is an established tax on consumption, the mandatory impact of the full quotas shifts the tax burden to the later stages of the production process or distribution of goods and services to reach the final consumer.

In cases where the persons or entities carrying out the operations subject to the operation are not established in Spain, the Law, in accordance with Article 21 (1) (a) of the Sixth Directive, considers that the payment of the Tax on employers or professionals for whom such operations are carried out.

IX. THE TAX BASE

The Community Directives have determined the criteria for setting up the tax base applicable in the Member States of the European Economic Community. The basis for the harmonization of work is, on the one hand, the opportunity and convenience of safeguarding the neutrality of the tax on international transactions and, on the other, the financing policy of the European Economic Community, by the so-called "own resources".

In harmony with the provisions of Title VIII of the Sixth Directive, the Law lays down rules for the fixing of the tax base, differentiated from domestic transactions (supplies of goods and services) and imports.

In the domestic transactions, the taxable amount shall be the total amount of the consideration of the transactions subject to it. This criterion of determining the tax base in the tax on the turnover of the companies is not new in our tax system, since it already ruled in respect of other indirect taxes after the reform carried out The Law of the Transitional Regime of Indirect Taxation. The positive and negative items which make up the tax base are very similar to those set out in Article 12 of the current recast of the General Tax on the Traffic in Enterprises, although some of them have been amendments relevant to the adaptation of the law to the harmonisation criteria in force in the European Economic Community. All taxes and charges of any kind that fall on taxable transactions, except the value added tax itself, shall form part of the tax base.

Also, the Law provides for the rectification of the tax base when the consideration of the taxed transactions is modified or they are left without effect.

The special rules for the fixing of the tax base are intended to prevent fraudulent actions, to establish criteria for assessing consideration, when it does not consist of money, to determine the rule of application in operations carried out without consideration and, in the end, to avoid distortions in operations carried out by commission members on their own behalf and on behalf of their clients.

X. THE Imports

1. Given the peculiarity of the imports against the other two taxable facts of the tax (supplies of goods and services), and following the precedent of the legislations of certain Community countries, the Law regulates in a specific, in particular the second, the tax arrangements for such import operations.

2. Taxable fact.

In Article 20 of the Law the concept of import is contained.

The delimitation, for the purposes of VAT, of two independent territorial areas-the Spanish peninsular territory and the Balearic islands of one part and the Canary Islands, Ceuta and Melilla of the other-makes it necessary to implement the the same mechanisms established with third countries in relation to the commercial relations between the two territorial areas, in order to maintain the neutrality of the tax on trade. This is why the importation into the Spanish peninsular territory and the Balearic Islands is defined as the entry of goods into those territories, whatever their origin, even when it is from the Canary Islands, Ceuta or Melilla.

The system of tax benefits established in favour of goods imported or located under suspension of customs arrangements or from exempt areas, determines the need to tax as imports consumption of the goods that had been placed and remained in the indicated situations, benefiting from the exemptions established for that purpose.

Analogous grounds justify the subjection to the tax, by way of import, of changes in the affectation of ships, aircraft or goods incorporated in them which have been the subject of exempt or de deliveries declared exempt as export transactions, where the conditions under which the exemptions were applied were changed, as well as the acquisitions in the interior of goods, the import or delivery would have benefited from exemption, as they are intended for Embassies, Consulates and international organizations or the use of the persons affected in the service of the same.

3. Exemptions.

In Articles 21 and 22 of the Law, and in harmony with Articles 14 and 16 (1) (A) of the Sixth Directive, certain import operations are declared exempt.

These tax benefits are part of the legal instrument package, the purpose of which is to ensure the neutrality of the tax on foreign traffic, as well as to facilitate international trade and to prevent distortions in the activity of certain economic sectors.

In Article 21, the exemptions for the definitive imports of goods are listed.

In order to guarantee the neutrality of the tax, the imports of those goods whose delivery inside is exempt, as is the case with ships and aircraft destined for international navigation, are declared exempt. or with the avittualments of these means of transport.

Also, the imports of goods that are intended to facilitate the transfer of the belongings of persons who change residence, of goods intended to promote trade and trade and of goods, will be exempt. of those who seek to attend to certain social ends, generally coinciding with the customs franchises.

Reimports of goods in the same state in which they were exported also enjoy exemption to avoid double taxation that would occur if they were taxed.

The protection of fisheries, which traditionally inspires Community tax legislation, justifies the exemption from the importation by sea of unprocessed products which have been caught by the shipowners of the Community. fishing vessels.

In order to avoid double taxation, the benefits of services whose value is included in the tax base of the imports of goods are also declared exempt.

Finally, the content of the international agreements and agreements entered into by Spain requires the recognition of the exemptions provided for in Article 21 (8) to (11) of the Law concerning imports into the Community. diplomatic and consular arrangements, to those carried out by international bodies and to those carried out under cultural, scientific, technical or traffic conventions with neighbouring countries.

In Article 22 of the Law, the exemptions that relate to imports of goods into suspension regimes or exempt tariff areas are included.

The exemptions for suspension schemes are justified on the grounds of administrative simplification and the elimination of unnecessary costs, as the goods imported into these schemes are normally re-exported, and the Tax required at the entrance would be returned to the exit; and as for the exempt areas, the quasi-territorial character of the same determines the necessity to postpone the levy of the tax to the moment in which, eventually, the goods were introduced into the common territory for consumption.

4. The accrual.

In order to eliminate possible distortions in the application of the tax, the Law, taking advantage of the faculty that attributes to the Member States of the European Economic Community Article 10, number 3, paragraphs 2 and 3, of the Sixth Directive, the accrual on imports is the same as the time established for customs duties: that of the import application to the Customs, when that application is accepted by this office when the requirements are met. required by customs legislation.

5. Taxable person.

On imports of goods are taxable persons who make imports, irrespective of their condition.

In addition to passengers who, as final consumers, will not be able to deduct the import quotas, the Law specifies that the real recipients of the goods are considered to be importers, since only they will be able to deduct the fees paid to the importation of the goods used in the transactions originating in the right of deduction.

Consistency with customs rules determines the setting of liability or subsidiary liability assumptions, referred to the guarantors, the Renfe and the Customs Agents.

6. Tax base.

Of the possible criteria applicable for the determination of the tax base on imports of goods, the Law has chosen to add to the "Customs Value" the taxes satisfied on the occasion of the importation and the expenses that occur to the first place of destination in the interior of the country. In this way, the tax base is objectified as far as possible.

Special rules lay down the criteria for determining the tax base in the case of the definitive importation of goods which, previously, had been placed under customs, suspension or area arrangements. exempt.

XI. THE TAX RATE

The Value Added Tax, as well as being a means of collecting public revenues, is an instrument of economic policy of singular effectiveness. The determination of the tax rates of the levy should be in line with the economic policy criteria in force at any time.

The excessive proliferation of tax rates makes it difficult to function in a tax which, like the Value Added Tax, is eminently formal, since it would force a complex organization to be implemented. make it possible to distinguish in each invoice the bases and quotas corresponding to the transactions taxed according to the applicable tax rates, which would be particularly costly for certain companies, in particular retail establishments, It is a clear contribution to increase the indirect tax burden. As a result, the general trend in the European Economic Community of the reduction of the variety to only two or more has been progressively reduced by the general trend in the countries with which VAT is introduced. three tax rates.

The criteria for determining the consumer goods are partially consistent with those in force in the Luxury Tax, which, however, have been duly updated, limiting their objective scope to the end of the period. to avoid disturbances in commercial traffic.

The need to harmonise our legislation with the Community has led to the establishment of the reduced rate in an appropriate amount which would normally allow the deduction of tax payments from the tax incurred at the previous stage, dispensing with the so-called zero type.

The ordinary rate of 12 per 100 is remarkably moderate compared to those in other countries in the European Economic Community. For their determination, the economic and fiscal policy objectives that inspire the Law have been taken into account.

XII. DEDUCTIONS

The Law improves and substantially completes the regulatory regulation of the deductions regime contained in previous VAT bills, in order to concretize the elements directly determining the amount of the tax liability.

The requirements and procedure of the deduction are regulated in accordance with the rules and the spirit of the Sixth Community Directive. The guiding criteria for the exclusions and restrictions of the right to deduct are those contained in the Proposals for the 12th and 13th Directive, which synthesise the experience of the current regime in the various Community countries.

In cases where the same taxable person carries out different business or professional activities, the deductions scheme of which is different, the obligation to apply the deductions scheme independently is available. in respect of each of them, unless otherwise authorised.

Where the taxable person jointly makes supplies of goods and services which give rise to the right to deduct and other operations of a similar nature which do not enable him to exercise that right, he shall be application of the rule of pro rata, regulated in the Law in its two modalities: General or special.

In order to encourage productive investment, the Act authorizes the immediate deduction of the tax quotas that are incurred in the purchase or import of investment goods.

However, in order to prevent distortions in the operation of the tax, the obligation to regularise the deductions initially practiced for a period of four years or, in the case of buildings or buildings, is established. nine years from the beginning of the effective use of the said goods.

In cases of the transfer of investment goods during the regularisation period, the regulatory criteria laid down in Article 20 (3) of the Sixth Directive shall apply.

If investment assets are acquired prior to the effective start of business or professional activities, there are no appropriate criteria for determining the applicable deduction percentage. Article 46 of the Law provides for the application of a percentage of provisional deduction to be replaced by the definitive one, determined on the basis of the operations carried out during the first three calendar years of the financial year. activity.

XIII. RETURNS

In cases where the amount of deductible fees exceeds that of the amounts passed over the same period of time, the balance in favour of the taxable person shall be charged to the subsequent immediate settlement period.

However, in order to avoid financial difficulties for business, the right to return the existing balance in favour of the taxable person is recognised on 31 December of each year. In the case of taxpayers who have made exports or similar transactions the overall amount of which is more than 20 million pesetas, the right to repayment is brought forward at the end of each of the periods of liquidation, with the Precautionary limitations that are foreseen in the Law.

A flexible and flexible procedure will be used to help improve the external competitiveness of exporting companies.

the Eighth Community Directive regulates a special procedure for refunds in favour of employers or professionals established in the European Economic Community who are not established in the territorial area of application of the tax. Article 51 of the Act incorporates such a procedure in the terms of that Community Directive.

XIV. SPECIAL SCHEMES

The high number of taxable persons of the future Value Added Tax and the different condition of the same advises to establish special regimes of application of the said tribute.

1. In the case of small enterprises, the simplified scheme applies in cases where the taxable person's business figure does not exceed 50,000,000 pesetas, the most relevant of which will be the application of the application. the system for the objective estimation of tax quotas and the reduction of the accounting and registration obligations to the minimum necessary to ensure the proper functioning and proper control of the tax.

2. The special arrangements for agriculture, livestock farming and fishing shall apply only in respect of agricultural and fishing activities in fresh or farmed water of primary character, excluding holdings which carry out operations of industrial processing of your products.

The terms of the Sixth Community Directive and the development of the negotiating phase for the accession of Spain to the European Economic Community do not allow the inclusion of independent livestock farming between the activities which are the subject of special scheme.

3. The special arrangements for the goods used and for the objects of art, antiques and collectibles are based on the normative criteria of the Seventh Directive presented by the Commission to the Council of the Economic Community. European Council of 11 January 1978 and the amendments thereto of 16 May 1979. However, the necessary variations are introduced to simplify their operation.

4. The regulation of the special arrangements for travel agents is in line with the guidelines laid down in Article 26 of the Sixth Community Directive. It shall apply to operations carried out by travel agencies when they act in their own name in respect of travellers.

The tax base will be the gross margin of the travel agency. In view of the difficulty and, at times, the impossibility of knowing a priori the gross margin of each transaction, it is established that, for the purposes of completing their statements-settlements, taxable persons may determine the taxable amount overall for each settlement period in respect of the operations to which the special scheme is applicable.

5. Finally, two special schemes for retail trade are established. The system of proportional determination of the taxable bases and the regime of the Equivalence Charge.

The system of proportional determination of the taxable bases is intended to avoid distortions which could result from the multiplicity of tax rates corresponding to the various kinds of transactions. made by retail traders to whom the special arrangements for the equivalence of equivalence do not apply.

The special scheme for the equivalence of equivalence is established on a provisional basis and shall be applied on a compulsory basis to natural persons, retail traders, who carry out their business in the economic sectors which are determined to be regulated.

The taxable persons to whom this special scheme applies shall not be obliged to enter into the Treasury the tax debts corresponding to the Value Added Tax. The charge for such debts shall be effected by means of the Equivalence Charge which their suppliers will pass on to the Public Finance. The special arrangements for the Equivalence Charge will allow certain retailers to reduce their formal obligations considerably.

XV. MANAGEMENT OF THE VAT

Following the usual practice in our indirect taxation and in Comparative Law, the system of self-validation and simultaneous entry for payment of the tax is established in general.

However, in the case of imports, the proper control of the tax makes it necessary for the corresponding liquidation to be carried out in the form provided for by the customs legislation for the tariff duties, without it being possible their compensation in the statements-settlements to be made by importers who have the status of employers or professionals.

XVI. OBLIGATIONS OF TAXABLE PERSONS

The relevance of the Value Added Tax, due to its importance in collecting and constituting an important source of information for the tax administration, justifies the demand by the taxable persons of the Tax.

1. The massive application of IT methods to the management of the tax has as a preliminary budget the availability of an adequate census, whose updating depends to a great extent on the collaboration of the taxable persons, instrumented by the timely declarations, the obligation of which is laid down in the Law.

2. The control of the tax cannot be carried out without the corresponding documentary and accounting support. The Law regulates the formal and registration obligations of taxable persons with criteria of great flexibility, authorizing the establishment of alternative formulas for their compliance, in order to prevent disturbances in the development of business or professional activities.

3. The contribution of information on cross-operations between different employers or professionals has contributed effectively to the avoidance of tax fraud by providing the Finance Inspectorate with a very valuable instrument of control. The perspective of the years since the establishment of these reporting obligations makes it possible to improve the applicable rules, without prejudice to their regulatory development.

XVII. PROVISIONAL LIQUIDATION OF TRADE

The procedure for the provisional liquidation of trade is governed by Article 70 of the Law in terms similar to those contained in other European legislation. The experience of other countries endorses the extraordinary effectiveness of this procedure in order to encourage voluntary compliance with the obligation to self-abolish the tax.

XVIII. SUSPENSION OF INCOME

order to reduce the financial burden on exporters, certain Community countries authorize the purchase of products intended for export with a suspension of entry of the quotas. tax due on the corresponding deliveries.

However, the mechanism of suspension of income causes administrative and control difficulties, and has been the occasion for notorious cases of tax fraud in other countries.

The Law confers on the Government the power to authorize the suspension of the charge of the Tax in the cases of acquisition by the exporters of the goods or services related directly to their export operations, when it considers it appropriate, in order to maintain the competitiveness of Spanish products abroad.

XIX. TRANSITIONAL ARRANGEMENTS

The entry into force of the Value Added Tax will mean a very important change in the taxation of business and professional activities, determining the appropriateness of establishing corrective measures that ensure tax fairness and avoid potential imbalances in business activity.

For this purpose, the corresponding mechanisms are established to correct the double incidence of the taxes previously incurred, to avoid disturbances in the pace of business investment that could (a) to be produced in the light of the implementation of the tax and, finally, to prevent possible inflationary effects.

XX. INFRINGEMENTS AND PENALTIES

Budget necessary for the proper functioning of the Value Added Tax is the availability of an effective tax administration, endowed with the personal and material resources necessary to guarantee its effectiveness, ensuring adequate assistance to the taxpayer and the correction of any insolidary behaviour.

It is considered appropriate to enhance the effectiveness of the tax rules by establishing a regime of infringements and penalties consistent with the specific forms of fraud. taxation of the tax, without prejudice to the rules of repression of tax fraud that are contained in the General Tax Law.

XXI. ADDITIONAL PROVISION

The tax regime for real estate operations is based on important exemptions that will affect the supply of rustic land, non-buildable urban land, second and subsequent deliveries of buildings, leases of certain buildings, etc. Such operations would be subject to the concept of "onerous transfers" of the Tax on Proprietary Transmissions and Documented Legal Acts if they were carried out outside the context of business or professional activity. The additional provision of the Law prevents any distortions which may arise in the event that the same transactions carried out in the field of business or professional activities-exempt from VAT-are not subject to the tax On Heritage Transmissions and Documented Legal Acts.

XXII. TRANSITIONAL PROVISIONS

The transitional provisions of the Law determine the system of taxation of transactions that occur in the immediate periods of time at the entry into force of VAT.

XXIII. FINAL PROVISIONS

The final provisions of the Act specify the date of entry into force of the Tax and the rules to be repealed when such a circumstance occurs.

PRELIMINARY TITLE

Nature and scope of application

Article one. Nature of the Tax.

The Value Added Tax is a tribute of indirect nature that falls on the consumption and taxes, in the form and conditions provided for in this Law, the deliveries of goods and services made by Employers and professionals and imports of goods.

Article two. Spatial scope.

1. Supplies of goods and services made in the Spanish peninsular territory and the Balearic Islands, as well as imports of goods in those territories, shall be subject to the value added tax.

For the purposes of this Tax, the spatial scope referred to in the preceding paragraph shall comprise the adjacent islands, the territorial sea up to the limit of twelve nautical miles as defined in Article 3 of Law 10/1977, 4 of January, and the corresponding airspace.

2. The Tax will be required in accordance with the provisions of this Law and in the regulatory norms of the Concerto, Convention or Tax Schemes that are applicable in each Autonomous Community.

3. The value added tax shall not apply to operations carried out in the Canary Islands, Ceuta and Melilla.

4. The application of the tax shall take into account the provisions of the International Treaties forming part of the Spanish internal order.

TITLE FIRST

Deliveries of goods and services by employers or professionals

CHAPTER FIRST

Delimitation of the taxable fact

Article three. Taxable fact.

1. Goods and services provided by employers or professionals for consideration on a regular or occasional basis are subject to the tax on the development of their business or professional activity.

For the purposes of this Law, they are treated as supplies of goods and services carried out for consideration in the case of transactions carried out without consideration in Articles 6, 3 and 7 of this Law. Law.

2. The attachment to the tax is produced regardless of the purpose or results pursued in the business or professional activity or in each operation in particular.

3. Transactions subject to this Tax shall not be subject to the concept of "onerous transfers" of the Tax on Proprietary Transmissions and Documented Legal Acts.

Except as provided in the preceding paragraph, the deliveries and leases of immovable property that are exempt from the Value Added Tax.

Article four. Concept of business or professional activities.

1. It is business or professional activities that involve the self-management of material and human factors of production, or one of them, in order to intervene in the production or distribution of goods or services.

In particular, extractive, manufacturing, trade or service provision, including agricultural, forestry, livestock, fishing, construction, mining, and the exercise of liberal professions, and artistic.

2. For the purposes of this Law, employers or professionals shall be deemed to be:

1. º Persons or entities who habitually perform business or professional activities.

2. The commercial societies, in any case.

They shall not have the consideration of business or professional persons or entities who exclusively perform supplies of goods or services free of charge.

3. The habituality may be credited by any of the eligible means of proof in law.

The habituality will be assumed:

(a) In the cases referred to in Article 3 of the Trade Code.

b) When for the performance of the operations referred to in Article 3 of this law, it is required to contribute to the Tax License of Commercial and Industrial Activities or of Professional and Artistic Activities.

4. Employers or professionals shall, in any event, be considered to carry out the following operations:

1. The completion of one or more deliveries of goods or services that result in the exploitation of a body or property in order to obtain continued income over time.

2. The urbanization of land and the promotion, construction or rehabilitation of buildings for sale, award or assignment for any title, even if they are performed occasionally.

The effects of this tax are considered not only for housing and urban buildings, but also for all the buildings carried out, both in the soil and in the subsoil, provided that they are susceptible to independent and independent use.

5. They shall be understood as being carried out in the development of a business or professional activity, in any case:

(a) The supply of goods and services by commercial companies.

(b) transmissions or transfers of use to third parties of all or part of any goods or rights that integrate the business or professional assets of the taxable persons, including those made on the occasion of the cessation of the exercise of the economic activities that determine the subjection to the tax.

(c) Transfers of assets or rights to the business or professional assets of the taxable person to his or her personal assets.

Article five. Non-subject operations.

They are not subject to Tax:

1. The transfer of the entire business or professional assets of the taxable person, carried out in favour of one or more acquirers when they continue to carry out the same business or professional activities of the relay.

The provisions of the preceding paragraph shall not apply in the case of transmissions carried out by means of live acts if the assets are transmitted by parties to different acquirers.

In any event, transfers of the goods or rights that are disaffected from those business or professional activities that determine the non-attachment of such transmissions shall be subject to the Tax.

2. º Money deliveries for consideration or payment.

3. The free deliveries of samples or advertising objects of low value and the performance of demonstration services free of charge, performed by some and others for the promotion of business activities or professionals.

4. The services provided by natural persons under a dependency regime arising from industrial or administrative relations, as well as those provided to worker cooperatives associated with the partners.

5. The operations referred to in Article 6, number 3, paragraphs, 1. º, 2. º, 3. º and 4. º, and in Article 7, number 3, paragraphs 1 and 2. of this Law, provided that the right to carry out the right is not attributed to the taxable person. total or partial deduction of the tax incurred in the acquisition or import of the goods to which they relate or their component parts.

6. The deliveries of goods or services made directly by the State, the Entities in which it is organized territorially and its autonomous bodies, when carried out without consideration or by means of Tax-based consideration.

However, operations that you perform in the development of the following activities are subject to the following:

a) Telecommunications.

b) Distribution of water, gas, electricity and thermal energy.

c) Transports of goods and people.

d) Provision of port and airport services.

e) Deliveries of products obtained, manufactured or processed by themselves.

f) Intervention on agricultural products aimed at regulating the market for these products.

g) Exploitation of trade fairs and exhibitors.

h) Store and warehouse.

i) The commercial advertising offices themselves and those of travel agencies.

j) Exploitation of canteens and canteens, cooperatives, economates and similar establishments.

k) Teaching and feeding, transport and accommodation accessories of that.

l) Commercial or commercial of public radio and television.

7. The benefits of services free of charge, other than those specified in Article 7, number 3, paragraphs 1 and 2. of this Law, which are mandatory for the taxable person, under legal rules or conventions collective, including telegraphic and telephone services provided on a franchise basis.

Article six. Concept of delivery of goods.

1. The transfer of the power of disposal on personal property is understood to be the supply of goods.

For these purposes, heat, cold, electrical energy, and other energy modes are considered bodily goods.

2. They have the consideration of delivering goods:

1. The constitution, extension of its content or the transmission of real rights of enjoyment or enjoyment of real estate.

2. The transfer of the property, the use or the exclusive enjoyment of immovable property by the transfer of securities that attribute such rights to the property.

3. The transmission of the power of disposal on goods by the assignment of representative titles of the goods.

4. The execution of the work in which the cost of the materials contributed by the employer exceeds 20 per 100 of the tax base.

However, the execution of the work carried out by the owner of the work or assembled by the owner of the work shall be considered, in any case, as supplies of goods.

5. º Non-cash contributions made by taxable persons of the tax of assets of their business or professional assets to companies or communities of goods and the awards of this nature in case of liquidation or total or partial dissolution of those, without prejudice to the taxation applicable in accordance with the regulatory rules of the concepts "documented legal acts" and "corporate operations" of the Transmissions Tax Heritage and Documented Legal Acts.

6. The transmissions of goods by virtue of a rule or an administrative or jurisdictional decision.

7. The disposals of goods under contracts for sale in instalments with a reserve of domain and lease-sale agreements.

For the purposes of the foregoing paragraph, leases with an option to purchase from the time the lessee undertakes to exercise the option of purchase and, in general, the leases shall be treated as the lease-sale. of property leases with a property transfer clause, binding on both parties.

8. The transmissions of goods between the principal and the comitonist acting on behalf of the commission under contracts of commission of sale or commission of purchase.

3. Likewise, the concept of self-consumption of goods is conceptualized.

For the purposes of this Tax will be considered self-consumption of goods:

1. The transfer effected by the taxable person of personal property or real rights of enjoyment or enjoyment of immovable property of his business or professional assets to his or her personal patrimony or to the private consumption of the holder.

2. The transmission of the power of disposal on personal property or the transfer of real rights of enjoyment or enjoyment on immovable property that integrates the business or professional assets of the taxable person, carried out in title free.

3. The change in the affectation of personal property or real rights of enjoyment or enjoyment of real estate in a sector to another distinct from its business or professional activity.

For the purposes of the preceding paragraph, the following shall be considered as distinct sectors of business or professional activity:

(a) Those where the economic activities performed and the applicable deduction schemes are different.

The deduction schemes referred to in the preceding paragraph shall be considered as distinct if the percentages of deduction which would be applicable in each of the economic sectors determined in accordance with the provisions of the Article 40 of this Law, differ from each other by more than fifty percentage points.

(b) Sectors covered by the following special schemes: Simplified, agricultural, livestock and fishing or the Equivalence Charge.

4. The affectation or, where appropriate, the change of affectation of goods constructed, extracted, processed, acquired or imported in the exercise of a business or professional activity of the taxable person for use in the same activity as investment goods.

The provisions of the foregoing paragraph shall not apply in cases where the taxable person has been assigned the right to deduct in full the value of the value added tax which he has incurred in the case of acquire third parties of identical nature.

Article seven. Concept of services capabilities.

1. For the purposes of the Value Added Tax, any operation subject to the provision of services which does not have the consideration of the supply of goods in accordance with the provisions of the foregoing Article shall be understood.

They do not have the consideration of services capabilities imports of goods.

2. In particular, they are considered to be services:

1. The independent exercise of a profession, art or craft.

2. º The leases of goods, industry or business, companies or commercial establishments, with or without option to purchase.

3. º The disposals of use or enjoyment of movable property.

4. Cessions and concessions of copyright, licenses, patents, trademarks and other intellectual and industrial property rights.

5. The obligations to do and not to make and the abstentions stipulated in contracts of sale exclusively or derived from agreements of distribution of goods in delimited territorial areas.

6. º The executions of works that do not have the consideration of supplies of goods, in accordance with the provisions of the previous article.

7. The transfer of business premises.

8. Transports.

9. The hospitality, restaurant or camping services and sales of beverages or food for immediate consumption in the same place.

10. º Insurance, reinsurance and capitalization operations.

11. º The hospitalization benefits.

12. º Loans and credits.

13. The right to use sports or recreational facilities.

14. The exploitation of fairs and exhibitions.

15. º Mediation operations and agency or commission operations when the agent or agent acts on behalf of others. When acting on its own behalf and in the provision of services, it shall be understood to have received and provided the corresponding services by itself.

3. The self-consumption of services also has this regard, being understood as such:

1. The transfer of goods and rights, not included in the previous article, from the business or professional assets to the personal property of the taxable person.

2. º The total or partial application, to the particular use of the taxable person, of goods affected to his business or professional activities.

3. The services provided by the taxpayer are free of charge.

CHAPTER II

Exemptions

Article eight. Exemptions in internal operations.

1. They are exempt from this Tax:

1. The performance of services and the supply of ancillary goods to the services carried out by the postal public services.

The exemption does not extend to telecommunications or passenger transport.

2. The benefits of inpatient or health care services and other services directly related to the services carried out by public law entities or by private entities or establishments under authorized prices.

The exemption does not extend to veterinary services.

3. The attendance of natural persons in the exercise of medical and health professions defined as such by the legal system, whichever person is the person to whom the service is provided.

4. The deliveries of blood and other fluids, tissues and other elements of the human body made for medical or research purposes or for their processing for the same purposes.

5. The performance of services performed in the field of their respective professions by stomatologists, dental practitioners and dental prosthetics, as well as the delivery, repair and placement of prostheses Maxillary dental and orthopaedic.

6. º The services provided directly to its members by unions, groups or entities constituted by natural or legal persons who essentially exercise an activity exempt or not subject to the tax, when the Following conditions:

(a) that such services are used directly and exclusively in such activity and are necessary for the exercise thereof.

(b) Members shall be limited to the reimbursement of the share corresponding to the expenses incurred in common.

c) That the right to the exemption in the form determined in the Tax Regulation be recognized in advance.

The exemption does not reach the services provided by the commercial companies.

7. The deliveries of goods and services that, for the fulfillment of their specific purposes, perform Social Security, directly or through their managing or collaborating entities.

This exemption shall apply only in cases where those who carry out such operations do not receive any consideration from the acquirers of the goods or the recipients of the services other than the contributions made to Social Security.

The exemption does not extend to deliveries of medicinal products or medical equipment made on behalf of Social Security.

8. The following benefits of social assistance services are exempt from public law entities or private entities or establishments of a social nature:

a) Protection of children and youth.

b) Third age assistance.

c) Assistance to physically or mentally handicapped persons.

d) Assistance to ethnic minorities.

e) Assistance to refugees and asylum seekers.

f) Assistance to passersby.

g) Assistance to women with unshared family burdens.

h) Community and family social action.

i) Prevention of crime and social reintegration.

j) Assistance to alcoholics and drug addicts.

k) Assistance to former inmates.

The exemption includes the provision of the aforementioned social services, as well as the supply, accommodation or transportation of the above provided directly by those establishments or entities with means own or foreign.

9. The provision of services relating to the education of children or young people, to education at all levels and degrees of the education system, to language schools and to vocational training or retraining, carried out by teaching centres, as well as food, accommodation and transport services to the former, provided directly by the aforementioned centres, with their own or other means.

10. º The particular classes on subjects included in the curricula of any of the levels and degrees of the educational system, taught outside the teaching centers and independently of them.

11. º The disposals of personnel performed in the fulfillment of their ends, by legally recognized religious institutions, for the development of the following activities:

a) Hospitalization, healthcare, and others directly related to them.

(b) Social assistance referred to in paragraph 8. above.

c) Education, teaching, training and retraining.

12. Services and supplies of ancillary goods directly to their members by legally recognised bodies or entities which do not have a lucrative purpose, the objectives of which are: exclusively of a political, trade-union, religious, patriotic, philanthropic or civic nature, carried out for the achievement of their specific purposes, provided that, in addition, they do not perceive the beneficiaries of such operations any other than the quotations set out in its Statute.

The enjoyment of this exemption will require your prior knowledge of the Ministry of Economy and Finance for the procedure that you regulate.

13. º The services provided by entities governed by public law or by private entities or establishments of a social character to those who practice sport or physical education, whatever the person to whose office it is carried out the provision, and provided that such services are directly related to such practices.

14. The services provided below are related by entities governed by public law or by entities or cultural establishments of a social character:

a) The libraries, files, and documentation centers themselves.

b) Visits to museums, art galleries, art galleries, monuments, historical sites, botanical gardens and zoos.

c) Theatrical, musical, choreographic, audiovisual and cinematographic representations.

d) The organization of exhibitions and conferences.

15. The transport of sick or injured in ambulances or vehicles specially adapted for this purpose.

16. The insurance, reinsurance and capitalization operations, as well as the services provided by agents and insurance and reinsurance brokers.

17. º The deliveries of timbrated effects of legal tender in Spain in amount not exceeding their face value.

18. The following financial operations, whatever the person or entity that performs them:

(a) Cash deposits in their various forms and other related transactions.

b) The granting of loans and loans in money, whatever the condition of the borrower and the way in which they are instructed, even through financial effects.

(c) Other operations, including management, relating to loans or loans made by those who granted them.

(d) The provision of guarantees, guarantees and documentary credits.

The exemption extends to the management of loan guarantees or loans made by those who granted the loans or secured loans or the guarantees themselves.

(e) Operations relating to transfers, money orders, cheques, books, notes, exchange letters, payment or credit cards and other payment orders, including inter-bank cheques and stubs.

Change letter collection service or other documents received in collection management are not included in the exemption.

(f) Trading, exchange and similar services having as their object foreign currency, bank notes and coins that are legal means of payment, with the exception of coins and collection notes.

For the purposes of the preceding paragraph, coins and banknotes which are not normally used for their function as a legal means of payment or have a numismatic interest and the parts of the silver, gold or other metal.

(g) Services and operations, other than the deposit and management, relating to shares, shares in companies, bonds and other securities not mentioned in the preceding subparagraphs of this paragraph 18. from:

a ') The merchandise representative.

b ') Titles the possession of which ensures in fact or in fact the property, use or exclusive enjoyment of a immovable property.

(h) Negotiation and mediation, whether or not the public faith has appeared, in the exempt transactions described in the preceding paragraphs of this paragraph

.

i) The management of the Investment Fund, Pension, Investment in Assets of the Monetary Market, Regulation of the Mortgage Market and Retirement Collective, constituted according to its legislation specifies.

j) The intervention services in the operations described in the preceding letters of this paragraph 18. lent by Agents of Change and Exchange, Collegiate and Notary Trading Brokers.

19. The lotteries, bets and games organized by the National Lotteries and Gambling Agency of the State and the National Organization of the Blind, and, where appropriate, the corresponding organs of the Autonomous Communities, as well as the activities for which unauthorised authorisation or performance is the subject of the tax on raffles, tomballs, bets and random combinations or the rate of the games of luck, send or chance.

20. º Land deliveries that do not have the condition of buildables.

To this effect, the land classified as solar by the Law of Soil and other urban norms, as well as the other land suitable for the construction because it has been authorized by the corresponding administrative license.

The exemption does not extend to the deliveries of the following areas that do not have the condition of buildables:

(a) The urbanized or urbanized land, carried out by the developer of the urbanization.

(b) Land in which buildings are located in construction or completed construction, under the conditions and with the limits to be determined in a regulated manner.

However, the supply of non-buildable land in which buildings of an agricultural character are essential for their exploitation and those of the same type of land in which they exist are exempt. paralyzed, ruinous or derruid constructions.

21. º The deliveries of land that are carried out as a result of the initial contribution to the Juntas of Understanding by the owners of land included in polygons of urban development and the adjudications of land which are made to the owners referred to by the Boards themselves in proportion to their contributions.

The exemption extends to the land deliveries to which the repair is carried out under the conditions set out in the preceding paragraph.

This exemption will be conditional upon compliance with the requirements required by urban legislation.

22. The second and subsequent deliveries of buildings, including the land in which they are located, when they are completed after completion of their construction or rehabilitation.

The exemption does not extend:

(a) To the deliveries of buildings made in the exercise of the option of purchase inherent in a lease, by companies usually engaged in leasing operations.

b) To the delivery of buildings for immediate rehabilitation by the acquirer, provided that the requirements that are regulated are met.

For the purposes of this Law, the first transmission shall be considered to be carried out by the sponsor, provided that the building or rehabilitation is completed and before the uninterrupted use by a two-year period by its owner or by holders of actual rights of enjoyment or enjoyment or of the assignment of the building for the same period under lease contracts with no option to purchase.

23. º The leases that have the consideration of services pursuant to the provisions of Article 7 of this Law, and which have for object land or dwellings, included in the annexes and accessories accessories to the latter leased jointly with them.

The exemption does not include:

a) Land leases for vehicle parking.

(b) Land leases for the deposit or storage of goods, goods or products.

c) Land leases for exhibitions or for advertising.

(d) Leases with an option to purchase land or houses whose transmission is subject to and not exempt from the tax.

24. º The deliveries of goods that have been used by the transmission exclusively in the conduct of transactions exempt from the tax under this article, provided that the taxable person is not attributed the right to make the total or partial deduction of the input tax upon the purchase or import of such goods or components.

25. The supply of goods for which the acquisition or import or the component parts thereof would not have determined the right to deduct in favour of the transfer, pursuant to Article 32 (4) and (5), and in the Article 33 of this Law.

26. º The deliveries of paintings or drawings made by hand and those of sculptures, prints, prints and lithographs, provided that, in all cases, they are original works and are carried out by the authors of the same or by third parties they act in the name and on behalf of those.

2. For the purposes of this Article, the following requirements shall be considered as social entities or establishments in which the following requirements are met:

1. No. Of profit-making purposes and, where appropriate, to dedicate the benefits eventually obtained to the development of activities exempt from the same nature.

2. The charges of employers or legal representatives shall be free of charge, and shall be without interest in the economic performance of the holding by itself or through an individual.

3. The partners, community members or members of the Entities or establishments, their spouses or consanguine relatives up to and including the second degree may not be the principal recipients of the exempt transactions or special conditions for the provision of services.

The provisions of the preceding paragraph shall not apply in the case of the services provided for in paragraph 8 of this Article.

Article nine. Exemptions related to exports.

They are exempt:

1. Deliveries of goods sent definitively to the Canary Islands, Ceuta or Melilla or exported definitively abroad by the transmitter or by a third party on behalf and on behalf of the latter.

2. Deliveries of goods sent definitively to the Canary Islands, Ceuta or Melilla or exported definitively abroad by the acquirer not established in the Spanish mainland or the Balearic Islands or by a third party on behalf and by account of this.

In the case of supplies of goods to travellers resident in the Canary Islands, Ceuta, Melilla or abroad, the exemption shall only be granted to those operations which relate to the goods and are carried out under the conditions laid down in the determine regulentarily.

The goods destined for the equipment or victualling of sports or recreational craft, of tourism aircraft or of any means of transport of private use of the same are excluded from the provisions of this number. acquirer.

3. The provision of services consisting of works carried out on movable, acquired or imported goods to be the subject of such works in Spanish peninsular territory or Balearic Islands and subsequently sent definitively to Canary Islands, Ceuta or Melilla or exported definitively abroad by the person who lent them or by their consignee not established in the Spanish mainland or Balearic Islands, or by third parties in the name and on behalf of any of them.

4. The supply of goods to duly recognized bodies which send them definitively to the Canary Islands, Ceuta or Melilla or to export them definitively abroad in the framework of their humanitarian, charitable or educational activities, recognition of the right to the exemption in the form that it is regulated.

5. The provision of services, including transport and ancillary operations, other than those which are exempted under Article 8 of this Law, where they are directly related to exports or to shipments of goods to Canarias, Ceuta or Melilla.

6. Services provided by intermediaries acting in the name and on behalf of third parties when they intervene in the operations described in this Article or in those operations outside the Spanish peninsular territory or the islands Baleares.

This exemption does not apply to the mediation services of travel agencies which hire in the name and on behalf of the traveller benefits in the Canary Islands, Ceuta or Melilla or in any Member State of the Community European Economic.

Article ten. Exemptions in operations assimilated to exports.

The following operations are exempt:

1. Deliveries, constructions, transformations, repairs, maintenance, total chartering or leasing of vessels affected essentially by international maritime navigation and those intended exclusively for rescue, maritime assistance or coastal fishing, as well as the deliveries, leases, repair and preservation of the objects, including fishing equipment, incorporated in those vessels after their registration in the Register of Matriculation of Ships concerned or which is use for their operation on board the same.

The operations referred to in the preceding paragraph relating to warships, sports or recreational vessels and the objects incorporated therein are exempted from the exemption.

2. Deliveries of passenger goods placed on board the following vessels:

1. º Those who perform international maritime navigation.

2. The affections to salvage or maritime assistance.

3. ° The affections to the coastal fishing, without the exemption being extended to the provisions of on board.

In no case shall deliveries of avittualling products on board sporting or recreational vessels or, in general, private use be exempt.

3. Deliveries, constructions, transformations, repairs, maintenance, total chartering or leasing of aircraft used exclusively by companies which are essentially engaged in international air navigation, as well as deliveries, repairs, maintenance and leasing of the goods incorporated in those aircraft after their registration in the Register of Aircraft or used for their operation on board.

4. Deliveries of products intended for the purpose of aircraft flying international air navigation, where they are acquired by the Companies to which such aircraft belong and are placed in the tanks of the said companies controlled by the customs authorities.

5. The performance of services other than those related to numbers 1 and 3 of this Article, carried out to meet the direct needs of the vessels and aircraft referred to and their cargo.

6. The supply of goods and services provided in the framework of diplomatic and consular relations in cases and with the requirements to be determined in accordance with the rules.

7. Supplies of goods and services to international bodies recognised by Spain or to members with diplomatic status of such bodies, within the limits and under the conditions laid down in the Conventions International.

8. The gold deliveries to the Banco de España.

9. Services provided by intermediaries acting on behalf of and on behalf of third parties when involved in the operations described in this Article.

10. The carriage of passengers and their luggage by sea or air which, initiated in the Spanish mainland or the Balearic Islands, ends in the Canary Islands, Ceuta, Melilla or abroad, or vice versa.

Article 11. Exemptions for exempted areas and for the suspension of customs arrangements.

1. The following transactions relating to Free Trade Areas, Free Deposits and Deposits are exempt, provided that, where appropriate, the provisions of the customs legislation and the goods to which they relate remain within the scope of the Schemes for the indicated exempted tariff areas without being used or consumed:

1. The deliveries of goods dispatched or transported by the transferee or by the acquirer to the aforementioned exempt areas, to be placed under the customs procedures corresponding to them.

Services directly related to the deliveries referred to in the preceding paragraph are also exempt.

2. The deliveries of goods found in the above exempted area regimes, as well as the services directly related to such deliveries.

3. The performance of services relating to goods under the protection of the above exempted area schemes.

4. The services provided by intermediaries acting on behalf and on behalf of third parties when they intervene in the operations described in paragraphs 1, 2, 2 and

.

2. The following transactions relating to goods imported into transit or temporary importation arrangements or under the temporary admission system are also exempt as long as they remain in those situations and are met, where appropriate, the provisions of the customs legislation:

1. The deliveries of the goods under these arrangements and the customs system and the services directly related to those supplies.

2. º The services that refer to the same goods.

3. The services provided by intermediaries acting on behalf and on behalf of third parties when they intervene in the operations described in paragraphs 1 and

.

3. The benefits of services which are declared exempt in numbers 1 and 2 of this Article shall not, in any event, include those which are exempt under the provisions of Article 8 of this Law.

CHAPTER III

Place of realization of the taxable fact in international relations and with the Canary Islands, Ceuta and Melilla

Article twelve. Place of delivery of the goods.

In the case of international relations or, where appropriate, with the Canary Islands, Ceuta or Melilla, the following rules shall apply for the determination of the place of supply of goods:

1. Rule of thumb.

Deliveries of goods shall be construed as being made available to the acquirer.

2. Special rules.

1. The supply of movable tangible property which, situated in the factory, warehouse or warehouse, must be carried out for the purpose of making it available to the acquirer, shall be construed as being carried out in the place where they are located. those at the time of dispatch or transport, without prejudice to the

of paragraph 2.

By way of derogation from the preceding paragraph, where the goods to be imported are located in the Canary Islands, Ceuta and Melilla or abroad, when the dispatch or transport is initiated, the supplies of goods shall be the same made by the importer and, where appropriate, by successive transmitters shall be understood as being carried out on the Spanish peninsular territory or the Balearic Islands.

2. When the goods are the object of installation or assembly prior to their making available, the delivery shall be understood in the place where the installation or assembly is completed.

3. The renditions of real estate will be understood where they radiate the same.

Article thirteen. Place of performance of the services.

For the determination of the place of performance of services in relations with the Canary Islands, Ceuta, Melilla or abroad, the following rules apply:

1. Rule of thumb.

1. The services shall be considered to be provided in the place where the seat of the economic activity of the person is situated.

For the purposes of this Tax, the seat of economic activity in the territory where the person concerned centralizes the management and the usual exercise of his business or professional activity shall be understood, provided that, in addition, lack of permanent establishments in other territories.

2. º If the taxable person exercises his or her activity with habituality and at the same time in the Spanish mainland or the Balearic Islands and in the Canary Islands, Ceuta, Melilla or abroad, the services in which he or she is the permanent establishment from which the provision of the same is made.

Any fixed place of business where the taxable person carries out business or professional activities shall be considered permanent establishment.

In particular they will have this consideration:

(a) The headquarters, branches, offices, factories, workshops, facilities, warehouses, stores and, in general, the agencies or representations authorized to hire in the name and on behalf of the taxable person.

(b) Mines, quarries or scorials, oil or gas wells or other natural product extraction sites.

(c) Construction, installation or assembly works carried out by the taxable person and whose duration exceeds 12 months.

(d) Agricultural, forestry or livestock holdings.

3. The default of the above criteria shall be deemed to be the place of service of the address of the person providing the services.

2. Special rules.

1. The services directly related to buildings, including the rental of safety boxes, shall be understood as being in the place where the immovable property to which it relates is located.

2. Transport shall be deemed to have been carried out on the Spanish mainland and the Balearic Islands or in other territories on the part of the journey carried out in each of them, including their airspace and jurisdictional waters.

3. The following services shall be understood to be provided where the following services are physically performed:

(a) Those of a cultural, artistic, sporting, scientific, teaching, recreational or similar character, as well as the accessories of the former.

b) Hotels, restaurant or camping and in general supplies of beverages or food to consume in the same premises.

(c) Accessories for transport, such as loading and unloading, transhipment, warehousing and similar services.

(d) Those made in movable tangible property, including the construction, processing and repair thereof, as well as the expert reports, opinions and assessments relating to such goods.

4. Transportation Media Leases.

The determination of the place of performance of the means of transport leases shall be made in accordance with the provisions of paragraph 1 of this Article. However, it shall be understood that the goods are actually used in the following cases:

(a) Where the establishment from which it is situated outside the European Economic Community and the means of transport leased are used within the territory of that Community.

(b) Where the establishment from which it is situated within the territory of the European Economic Community and the means of transport are used outside that territory.

5. The services listed below shall be considered to be provided where the seat of the economic activity or the permanent establishment of the recipient of such services or, failing that, at the place of his/her address:

(a) The disposals and concessions of copyrights, patents, licenses, trademarks or trademarks and other intellectual or industrial property rights.

b) Advertising services.

(c) Professional advisory services, engineering, study cabinet, advocacy, consultants, accounting or tax experts and other analogues, except those covered by the second paragraph, paragraph 1. of this article.

d) The processing of data and the provision of information, including procedures and experiences of a commercial nature.

e) The insurance, reinsurance, capitalization and financial operations described in Article 8, number 1, paragraphs 16. and 18. of this Act.

(f) The translation, correction or composition of texts, as well as those provided by interpreters.

g) Business management by computer.

h) Staff disposals.

i) Leases of movable tangible property that are not means of transport.

j) Obligations not to fully or partially exercise any of the services referred to in this paragraph

.

(k) Mediation and management in the operations defined in the preceding subparagraphs of this paragraph 5., where the intermediary acts on behalf and on behalf of others.

The provisions of this paragraph shall not apply where the consignee is domiciled in a Member State of the European Economic Community and is not an employer or a professional or the services provided are not related to him. exercise of the business or professional activity of the same.

The burden of proof of the recipient's condition is the responsibility of the taxable person who provides the service.

CHAPTER IV

Tax Devengo

Article fourteen. Tax accrual.

1. The tax shall be payable:

1. In the supply of goods, where their making is available or, where appropriate, when they are made in accordance with the law applicable to them.

By way of derogation from the foregoing paragraph, in the supply of goods made under contract of sale to instalments with a pact of reserve of domain or of lease of goods with clause of transfer of the property Tax shall be payable on both sides when the goods constituting their object are placed in the possession of the acquirer.

2. In the provision of services, where they are provided, executed, or carried out or, where appropriate, where the provision of the goods on which they are placed takes place.

3. In the transfer of goods between the principal and the commission under contracts of sale commission, where the latter acts in his own name, at the time the commission delivers the goods respective goods.

4. In the transmissions of goods between the comionist and the comitent made under contracts of commission of purchase, when the former acts in his own name, at the moment when the commission is given the goods to that they refer to.

5. º In self-consumption assumptions, when taxed operations are performed.

6. º In the leases of goods, in the supplies, in the assignment of copyrights through an editorial contract on effectively realized sales and, in general, in the operations of the successive tract, in the moment in the share of the price to be understood by each perception is payable.

The provisions of the preceding paragraph shall not apply to the supply of goods made as a result of contracts for sale or similar contracts, in accordance with the provisions of Article 6 (2), paragraph 7. this Act.

2. In transactions subject to a charge arising from advance payments prior to the taxable event, the tax shall be payable at the time of the total or partial recovery of the price for the amounts actually received.

CHAPTER V

The taxable person

Article 15. Taxable persons.

1. They are taxable persons of the Tax:

1. º Natural or legal persons who develop business or professional activities and perform the supply of goods or provide services subject to the Tax.

2. º The business owners or professionals for whom the transactions are carried out, when they are carried out by persons or entities not established in Spain.

The provisions of the preceding paragraph shall not apply where the addressees of the transactions subject to the Tax are retail traders subject to the special arrangements for the Equivalence Charge.

For the purposes of this Law, taxable persons who hold the seat of their economic activity, a permanent establishment or their domicile are considered to be established in a given territory.

2. The following are considered to be taxable persons, the communities of property and other entities which, lacking legal personality, constitute an economic unit or a separate property liable to be imposed, when they carry out transactions subject to the tax.

Article sixteen. Impact of the Tax.

1. The taxable persons referred to in Article 15 above, other than those referred to in Article 15 (2) thereof, shall have full effect on the amount of the tax on the person for whom the taxable transaction is carried out, to support it provided that the impact is in accordance with the provisions of this Law and its regulatory standards, whatever the stipulations existing between them.

2. The impact of the tax shall be effected by means of the invoice or equivalent document.

For these purposes, the impact of the charge must be reported separately from the tax base, even in the case of administratively fixed prices, indicating the tax rate applied.

3. However, retail traders to whom the special arrangements provided for in Article 62 of this Law apply, shall record the tax rates and quotas, separately, on invoices or documents. equivalent only where the recipients of their transactions are subject to taxable taxable persons.

4. Furthermore, where the payment of the tax in the form indicated substantially disrupts the development of the business or professional activities, the tax-management centre may authorise, upon request of the persons or sectors affected, the impact of the tax on the price in the form and with the requirements that are regulated.

The authorization referred to in the preceding paragraph shall not be required in cases to be determined in the Tax Regulation.

5. Employers or professionals shall have the right to require the issue of an invoice or equivalent document adjusted to the provisions of the preceding number 2 where the fees passed are deductible.

6. The correction of the tax-related charges may be made in the cases and in the form to be determined in accordance with the rules.

However, in the cases of error in the settlement of the shares passed on, the correction that implies an increase of the same cannot be effected after one year of the issue of the invoice or document equivalent where the recipients are either business or professional taxable persons, or after the delivery of such documents in other cases.

CHAPTER VI

The tax base

Article seventeen. Tax base. Rule of thumb.

1. The base of the tax is constituted by the total amount of the consideration of the transactions subject to it.

2. In particular, they are included in the concept of consideration:

1. Fees of commissions, packaging, packaging, shipping and transport, insurance, advance benefit premiums, interest on deferred payments and any other cash on behalf of the person making the delivery or providing the service derived from both the main and ancillary services.

2. The accrued interest as a result of the delay in the payment of the price.

3. The subsidies directly linked to the price of the transactions subject to the tax.

4. º The taxes and levies of any class that fall on the same taxable transactions, except the Value Added Tax.

5. º Perceptions held under the right by the obligation to perform the provision in cases of resolution of transactions subject to the Tax.

3. They shall not be included in the tax base:

1. The amounts received for compensation, other than those referred to in the preceding number, which by their nature and function do not constitute consideration or compensation for the supply of goods or services of services subject to the Tax.

2. º The discounts and bonuses that appear separately on the invoice and which are granted prior to or at the same time when the operation is performed and based on it.

The provisions of the preceding paragraph shall not apply where the price of the minorings constitutes remuneration for other transactions.

3. The sums paid in the name and on behalf of the client, by virtue of the express mandate of the client, which are included in the accounts by the person who delivers the goods or provides the services in the corresponding specific accounts. The taxable person shall be obliged to justify the actual amount of such expenditure and shall not be liable to deduct the tax which, if any, would have taxed them.

4. Where, by final decision, judicial or administrative decision, or in accordance with the law or the trade practice, the taxable transactions are not fully or partially taken into account, or the price is altered after the date on which the transaction was effected, the Tax base will be amended to the corresponding amount.

5. The taxable amount determined in accordance with the preceding numbers of this Article shall be reduced in the following cases and amounts:

1. The amount of packaging and packaging that can be reused that have been returned.

2. º The discounts and bonuses awarded after the time the operation was performed, which can be checked by accounting.

6. In the cases referred to in the preceding numbers 4 and 5, the reduction in the tax base shall be conditional on compliance with the requirements which are laid down in the regulations.

7. Where the Value Added Tax quotas that are taxed on the transactions subject to it were not expressly passed on to an invoice or equivalent document, consideration shall be given to the fact that the consideration did not include such fees.

Except as provided in the preceding paragraph:

1. The cases in which the express impact of the tax is not compulsory.

2. º The assumptions referred to in paragraph 2, paragraph 5. of this article.

Article eighteen. Tax base. Special rules.

1. In transactions whose consideration does not consist of money, it shall be considered as a tax base that would have been agreed under normal market conditions between parties that were independent.

However, if the consideration consists partially in money will be considered tax base the result of adding to the value in the market of the part would not dinerary of the consideration the amount of the money part of the itself, provided that the result is greater than that determined by application of the provisions of the preceding paragraph.

2. Where goods or rights of different kinds are transmitted in the same operation and for a single price, the taxable amount corresponding to each of them shall be determined in proportion to the market value of the goods or rights transmitted.

3. In the case of self-consumption of goods, the following rules shall apply for the determination of the taxable amount:

First. If the goods are delivered in the same state in which they were acquired without having undergone any process of manufacture, manufacture or processing by the taxable person himself or on his own account, the taxable base shall be deemed to be the has been fixed in the operation for which the goods were acquired.

Dealing with imported goods, the tax base will be the one that would have prevailed for the liquidation of the import tax.

Second. In the case of goods subject to processing or processing by the transferor or on his own account, the cost, the value added tax, of the goods and services used by the taxable person shall be deemed to be the taxable amount. the procurement of the goods delivered, including personnel costs incurred for the same purpose.

If imported goods were used, the taxable base determined according to the second paragraph of the first rule above would be taken as the cost of acquiring them.

Third. However, if the purchase value on the market of the delivered goods has undergone alterations as a result of its use, deterioration, obsolescence, deactivation, revaluation or any other cause, it shall be considered as taxable base the value that corresponds at the time the delivery is made.

4. In the case of self-consumption of services, the taxable amount, the value added tax, of the goods and services, shall be considered as taxable in the measures in which they are used by the taxable person in the supply of services. including, where applicable, the depreciation of the assets transferred.

5. Where, where there is a link between the parties involved in the transactions subject to the tax, prices which are well below normal prices are agreed, the tax base may not be lower than that which would result from the application of the rules set in previous numbers 3 and 4.

The linkage may be tested by any of the eligible means in law.

For these purposes, it will be assumed that there is linkage:

(a) In the event that one of the intervening parties is a taxable person of the Company Tax, where this is deducted from the regulatory rules of this Tax.

(b) In transactions between taxable persons and persons linked to them by employment or administrative relations.

(c) In the operations performed between the taxable person and his or her spouse or their consanguine relatives up to and including the second degree.

6. In the transfer of goods from the principal to the commission under contracts of sale commission in which the commission acts on its own behalf, the tax base shall be constituted by the consideration agreed by the committee less than the amount of the fee.

7. In the transfer of goods from the commission to the principal under contracts of purchase commission in which the commission has acted on its own behalf, the tax base shall be constituted by the consideration agreed by the commission. plus the amount of the commission.

8. In the case of services carried out on behalf of the third party, where the person providing the services acts on his own behalf, the taxable amount of the transaction between the principal and the commission shall be the consideration of the service arranged by the commission minus the amount of the commission.

9. In the case of acquisitions of services carried out on behalf of third parties, where the person acquiring the services acts in his own name, the taxable amount of the operation carried out between the commission and the principal shall be the consideration of the consideration. of the service agreed by the commission plus the amount of the commission.

10. In the case of transactions the consideration of which has been fixed in foreign currency, the value of the value of the consideration in Spanish currency shall be effected by applying the exchange rate fixed by the Banco de España corresponding to the day of the accrual of the tax or, failing that, the immediate past.

Article nineteen. Determination of the tax base.

1. In general, the taxable amount shall be determined on a direct estimate basis, without any exceptions other than those laid down in this Law and in the rules governing the indirect estimation of taxable bases.

2. Regulation, in the economic sectors or activities and subject to the limitations specified above, may be laid down by the system of individual objective estimation for the determination of the tax base.

In no case shall this scheme be applied in the supply of immovable property, nor in the operations referred to in Articles 6, 3 (3), 3 (3) and 4 (3) and 15 (1) (2) of this Law.

3. In the case of non-filing of the declaration-settlements, the provisions of Article 70 of this Law shall be in relation to the provisional liquidation of the trade.

TITLE II

Imports

CHAPTER FIRST

Delimitation of the taxable fact

Article 20. Taxable fact.

1. Imports of goods are subject to the Tax.

For the purposes of this Tax, import is defined as the entry of goods into the Spanish peninsular territory or Balearic Islands, whatever the purpose for which they are intended or the condition of the importer.

2. Without prejudice to the provisions of the preceding number 1, import shall also be considered:

1. The authorization for consumption in the Spanish peninsular territory or Balearic islands of the goods that are regulated in the regimes of temporary importation, transit, traffic of inward processing in the temporary admission system, Free Zone, Franc Deposit or Deposits.

2. Deaffectation of the vessels and, where appropriate, of the objects incorporated or used on board of the vessels, for the purposes referred to in Article 21, number 1, paragraph 2. of this Law, when the entry of the said objects vessels or objects in the territories referred to in this Article have benefited from the exemption from the tax.

3. Deaffectation of the aircraft and, where appropriate, of the objects incorporated or used on board of the aircraft, of the companies that are essentially engaged in international air navigation, when the entry of the aforementioned aircraft or objects in the territories referred to in this Article would have benefited from the exemption from the tax.

4. The change of the conditions under which the exemption from the tax would have been applied to the deliveries or transformations of the ships, aircraft and objects incorporated or used for the operation of such means of transport.

5. º The acquisitions made in the Spanish mainland or Balearic Islands of the goods whose previous delivery or import would have benefited from the exemption from the tax under the provisions of Article 10, Numbers 6 and 7, and in Article 21, numbers 8 and 9, both of this Act.

However, the provisions of the preceding paragraph shall not apply where the acquirer immediately and definitively exports such goods or sends them in the same way to the Canary Islands, Ceuta or Melilla.

3. The provisions of paragraphs 2 and 3 of paragraph 2 of this Article shall not apply after 15 years after the importation or free deliveries referred to in those paragraphs have been carried out.

CHAPTER II

Exemptions

Article twenty-one. Exemptions on definitive imports of goods.

Imports of goods in the Spanish peninsular territory or Balearic Islands and the services provided in those territories which are specified below are exempt from the tax, provided that they are complied with. the conditions and conditions required by the rules for the development of this Law and the other requirements laid down in the customs provisions.

1. Definitive imports of the following goods:

1. Blood and other fluids, tissues, and other elements of the human body for medical or research purposes or for processing for identical purposes.

2. The vessels concerned essentially with international maritime navigation and those exclusively dedicated to rescue, maritime assistance or coastal fishing, as well as the objects incorporated into the vessels or which are intended to be used for their operation on board the holding, including the fishing equipment.

The exemption does not extend to warships or sports or recreational craft.

3. The aircraft intended to be used exclusively by companies which are essentially engaged in international air navigation and the objects incorporated in or used for the purpose of the aircraft. located on board the same.

4. The products of victualling which, from the moment when the entry into the Spanish peninsular territory or the Balearic Islands takes place until the arrival at the port or ports located in those territories that constitute stopovers of their journeys and during their stay for the period necessary for the fulfilment of their purposes, have been consumed or are on board ships engaged in international maritime navigation.

5. The products of victualling which, from the entry into the Spanish peninsular territory or Balearic Islands until the arrival at the airport or airports located in those territories that constitute stopovers of their travels and during the stay within them for the period necessary for the fulfilment of their purposes, have been consumed or are on board the aircraft carrying out international air navigation.

6. The products used in the victualling of ships and aircraft carrying out international navigation when imported by sea or air navigation companies using such vessels or aircraft.

7. º Legal course bank notes.

8. º The securities titles.

9. The paintings and drawings made by hand and the sculptures, prints, prints and lithographs, provided that, in all cases, they are original works and the imports are carried out directly by the authors of the same.

2. The gold imports made by the Banco de España.

3. The definitive imports indicated below, where the importer applies for the exemption and the conditions and requirements laid down in regulation are met:

1. The personal property used, belonging to natural persons who transfer their habitual residence from the Canary Islands, Ceuta, Melilla or abroad to the Spanish mainland or Balearic Islands.

For these purposes, personal property is intended for personal use or for the needs of the household of the person concerned or of the family members who live with it, including private motor vehicles, trailers, motorcycles, recreational craft and tourist aircraft. Such goods may not, by their nature or quantity, constitute a commercial expedition or be used for the purposes of economic exploitation or activity.

In the case of private motor vehicles, trailers, motorcycles, recreational craft and passenger planes, the exemption will also be conditional on the importer crediting the payment of the Value Tax. Addition or similar tax in the country of origin or country of origin and which has not benefited from the deduction or refund of the quotas corresponding to the departure of those countries.

If the tax rate applied in the countries of origin or origin is lower than that in the Spanish peninsular territory or Balearic Islands at the time of importation, the quota to be entered by that import will be shall be deducted from the support for the purchase of the vehicles referred to in the preceding paragraph in those countries.

Excluding alcoholic products falling within headings 22.03 to 22.09 of the Customs Tariff, tobacco in the branch or manufacture, industrial or commercial vehicles and materials of use professional or portable instruments of mechanical or liberal arts.

However, imports of alcoholic and tobacco products within the limits laid down for the passenger regime shall be exempt from the tax.

2. The furniture and goods that integrate the ajuar, including new ones, belonging to those who move their habitual residence from the Canary Islands, Ceuta, Melilla or abroad to the Spanish peninsular territory or Balearic Islands on the occasion of their marriage.

The gifts received by the persons referred to in the preceding paragraph shall also be exempt if the value of each of them does not exceed the amount to be regulated.

In any case, vehicles with a mechanical motor for road, trailers, vessels, aircraft, alcoholic products falling within heading No 22.03 to 22.09 of the Arancel de Arancel, shall be excluded from this exemption. Customs and tobacco in branch or manufactured tobacco, with the exception provided for in the fourth subparagraph of

1.

3. The personal property acquired due to inheritance by natural persons or non-profit entities who have their habitual residence or are established in the Spanish peninsular territory or Balearic Islands.

The exemption does not reach the goods referred to in the third subparagraph of paragraph 2. above, stocks of raw materials, semi-finished products and goods, nor livestock and agricultural products in the quantities which exceed sufficient for the normal supply of a family. This limitation shall not apply where the deceased has had his habitual residence on the territory of the European Economic Community.

4. The personal effects and objects of furniture used, as well as domestic animals imported by persons who have their habitual residence in the territory of the European Economic Community, when they are intended for secondary residence which those persons have on the Spanish mainland or the Balearic Islands.

5. The personal effects and objects of used furniture belonging to students who, having their habitual residence in the Canary Islands, Ceuta, Melilla or abroad, come to reside temporarily in the peninsular territory Spanish or Balearic Islands to carry out their studies in these territories. Also included in the exemption are used objects and instruments that are normally used by such students in carrying out their studies.

The exemption will only be granted once during each school year.

6. º The decorations granted by the authorities of a foreign country, or of the Canary Islands, Ceuta or Melilla to persons who have their habitual residence in the Spanish peninsular territory or Balearic Islands.

7. The cups, medals and similar objects of a symbolic nature, which have awarded or are intended to reward participation in certain artistic, scientific, sporting, public service activities or in certain relevant events.

8. The goods that, as a gift and on an occasional basis:

a) Be imported by persons who have made an official visit to the Canary Islands, Ceuta, Melilla or abroad.

(b) They are imported by persons engaged in an official visit to the Spanish peninsular territory or Balearic Islands to be delivered to official authorities or entities of these territories, or.

(c) Be sent to the official authorities or entities of the Spanish mainland or the Balearic Islands by authorities or official entities of the Canary Islands, Ceuta, Melilla or abroad.

In any event, the exemptions in this paragraph will be limited by the content of the applicable international passenger traffic provisions.

9. The goods destined to be used or consumed during their stay in the Spanish peninsular territory or the Balearic Islands by the foreign heads of state, by those who represent them or have similar prerogatives to them, on condition of reciprocity.

10. The goods donated to the King of Spain.

11. The following goods, imported by entities or establishments created for the fulfillment of charitable or philanthropic purposes, provided they are used exclusively for their specific purposes:

(a) Those acquired free of charge in order to be distributed to persons in need, with the exception of alcoholic products falling within headings 22.03 to 22.09 of the Customs Tariff, raw or manufactured tobacco, the coffee, tea and motor vehicles other than ambulances.

(b) Those intended to be distributed to victims of disasters produced in the Spanish peninsular territory or the Balearic Islands.

12. The goods imported by entities or establishments approved for the assistance of the disabled, specially designed for the education, employment or social promotion of the same.

13. ° Animals intended for use in laboratories and biological or chemical substances, where some and all are acquired for free and imported by entities governed by public law or by entities or entities private establishments essentially engaged in teaching or scientific research.

When biological or chemical substances do not originate in the European Economic Community, acquisitions will not be required to be free of charge, but the exemption will be conditional on their importation being also exempt from customs tariff duties.

14. The therapeutic substances of human origin and reagents for the determination of blood groups or for the analysis of human tissues, imported to be used exclusively for medical or scientific purposes.

The exemption shall also include packaging which is essential for the transport of such substances and reagents, as well as solvents and accessories for their preservation or use.

15. º Medicines and pharmaceutical products intended for the use of persons or animals participating in international sports competitions, in the precise quantities to cover their needs during the time which remain on the Spanish mainland or the Balearic Islands.

16. The samples with no estimable commercial value, which cannot serve more than to manage orders for goods of the species represented by them.

17. No advertising forms, such as catalogues or price lists, relating to goods for the sale or hire and the supply of services offered in transport, commercial or commercial insurance banking, when they are sent by state-owned enterprises outside the Spanish mainland or the Balearic Islands and whose name is clearly stated in those forms.

The exemption shall apply to a single copy of each document or to several copies where the total weight does not exceed one kilogram.

18. No advertising objects without commercial value, provided free of charge by suppliers established in the Canary Islands, Ceuta, Melilla or abroad, and who have no other possible function than advertising.

19. º The following goods for an exhibition or demonstration:

a) Small representative samples of goods.

b) Those that are used exclusively in the realization of demonstrations.

c) Materials of low value for the decoration of the pavilions of the exhibitors.

d) Advertising printed.

The goods referred to in the preceding letters may only be allocated to their free distribution or to be consumed or destroyed in the course of the exposure and their overall value or quantity shall be in relation to the nature of the manifestation and the importance of exhibitor participation.

Samples and printouts may not be used for advertising purposes.

It shall not be understood in the exposures or manifestations of this paragraph that they are held privately in warehouses or commercial premises for the sale of goods.

In any case, alcoholic products, tobacco and fuels and fuels will be excluded from the exemption.

20. º The investment property belonging to companies that cease definitively and totally in their activity in the Canary Islands, Ceuta, Melilla or abroad and move to the Spanish peninsular territory or Balearic Islands to start in these territories are a similar activity, provided that the transfer of the company does not cause the merger with another company established in the Spanish mainland or the Balearic Islands.

Exclude from this exemption:

(a) Means of transport which do not have the character of production or service instruments.

(b) Products fit for human or animal feed.

(c) Fuel and stocks of raw materials, semi-finished or finished products.

21. The products of agriculture, beekeeping, horticulture and forestry, which have not been processed after their harvest or production; the offspring of cattle, including horses of breed with less than six months of life, which comes from animals reared, acquired or imported under the general conditions of taxation in the Spanish peninsular territory or Balearic Islands, and products for agricultural uses.

The exemption will be conditional on the products indicated coming from or going to estates located in the vicinity of the Spanish peninsular territory with a foreign country, in the form and subject to the requirements to be regulated.

Imports of fishery products, fish farming and hunting in the lakes or rivers bordering the Spanish peninsular territory shall also be exempt where such products have not been the subject of processing and complying with the conditions which are provided for in regulation.

22. The goods to be examined, analysed or tested in order to determine their own composition, quality or technical characteristics, for the exclusive purposes of information or research of an industrial nature or commercial.

23. No. The marks, models or drawings, as well as the files relating to the application for patents of invention or the like, intended for the competent bodies in matters of protection of copyright or property industrial or commercial.

24. The goods destined for the conditioning or feeding in route of animals that, from the Canary Islands, Ceuta, Melilla or from abroad, are driven by the Spanish peninsular territory or Balearic Islands in any means of transport, provided that such goods are on board the means of transport and are used or distributed in the course of that journey.

25. º The fuels and lubricants contained in the normal tanks of vehicles of any kind that enter the Spanish peninsular territory or Balearic Islands.

26. º Goods for the construction, preservation or decoration of memorials or military cemeteries of foreigners in Spain.

27. º coffins and urns containing corpses or the remains of their incineration and the flowers, crowns and other ornamental objects that are normally accompanied by them.

28. The goods contained in the personal luggage of the passengers, under the conditions and with the limits to be established regulentarily.

29. ° The small consignments of goods transmitted without consideration by a particular resident in the Canary Islands, Ceuta or Melilla to another individual resident in the Spanish peninsular territory or Balearic Islands, in the quantities and conditions to be regulated.

30. º Official publications of the Canary Islands, Ceuta or Melilla or foreign countries, printed, brochures, posters, yearbooks, technical material and other analogues for the purpose of tourist propaganda to be distributed free of charge or to the official tourism agencies accredited in the Spanish peninsular territory or the Balearic Islands, provided that they do not contain more than 25 per 100 commercial advertising.

31. º The photographs, slides and clichés for press agencies or editors of newspapers and magazines.

32. The educational, scientific or cultural audiovisual materials produced by the United Nations Organization or any of its agencies in terms of and with the requirements specified in this article. regulentarily.

33. The objects of collection or art of educational, scientific or cultural character, not intended for sale and which are imported by museums, galleries and other approved establishments in the form that is determined to be regulated, provided that they have not been acquired for consideration by an employer or professional.

34. The objects destined to serve as means of proof before the Courts of Justice.

35. º The following documents:

(a) Those purchased for free by the State and other public Entes.

b) Publications of foreign governments or international public bodies for free distribution.

c) Voting ballots used in elections organized by a foreign country.

d) Recognition of signatures and printed circulars concerning signatures that are issued in the framework of the usual exchange of information between public services or banking establishment.

e) The official printed matter to the Banco de España.

(f) The reports, statements, catalogues, subscription bulletins and other documents issued by companies whose headquarters are located outside the Spanish peninsular territory or Balearic Islands and which are directed at their partners or subscribers securities resident in those territories.

g) The recorded media used for the transmission of information transmitted free of charge to its addressees.

(h) The files, files, forms and other documents intended for use in international meetings, conferences or congresses, as well as the minutes and summaries of these events.

i) drawings, technical drawings, copies, descriptions and other similar documents imported for the purpose of obtaining or carrying out orders for the Canary Islands, Ceuta, Melilla or abroad, or for participation in competitions organised in the Spanish peninsular territory or Balearic Islands.

j) Those intended for use in examinations organized in the Spanish peninsular territory or Balearic Islands by institutions established in the Canary Islands, Ceuta, Melilla or abroad.

k) Forms intended to be used as official documents in the international traffic of vehicles or goods, in compliance with International Conventions.

l) Forms, labels, transport titles and similar documents issued by transport companies or hotels established in the Canary Islands, Ceuta, Melilla or abroad to their travel offices established in the Spanish peninsular territory or Balearic Islands.

m) Forms and titles of transport, knowledge, transport cards and other commercial or office documents already used.

n) Official forms issued by national or international authorities, and printed according to international models directed by associations of the Canary Islands, Ceuta, Melilla or abroad located in the Spanish peninsular territory or Balearic Islands for distribution.

4. The reimportation of goods made by the person who carried out the temporary export of the goods abroad or their temporary dispatch to the Canary Islands, Ceuta or Melilla, provided that they are presented in the same state in which they came out and benefit from the exemption from customs duties or are likely to benefit from it if they are reimported from a country outside the European Economic Community.

The exemption will also be granted to the reimportation of the offal and remains of domestic shipwrecked vessels abroad, upon documentary justification of the casualty and the ownership of such goods to the shipwrecked vessel.

In the case of goods that are not present in the same state in which they came out, for having been the object of a repair, work, transformation or incorporation of other goods in the Canary Islands, Ceuta, Melilla or abroad, their reimportation will only be exempt in the following cases:

1. When the operations indicated are carried out on a free basis, under a contractual or legal obligation to guarantee or as a result of a manufacturing vice.

2. Where such operations are carried out on domestic ships or aircraft for which delivery or import is exempt, pursuant to Articles 10 and 21 of this Act.

5. The reimportation of goods by whom it temporarily sent them to the Canary Islands, Ceuta and Melilla, or temporarily exported them to a State of the European Economic Community, where such goods have been the subject of work in these territories taxed by identical or similar tax, without the right to deduct or refund.

6. Imports into the ports by vessel owners of fishery products which come directly from their catches and which have not been the subject of processing operations. For these purposes, processing operations are not considered to be intended to preserve the products for marketing, carried out before the first delivery of the products.

7. The provision of services, other than those declared exempt in Article 8. of this Law, the consideration of which is included in the taxable amount of the imports of goods to which they relate, in accordance with Article 25, paragraph 2. of this Law.

8. Imports into diplomatic or consular arrangements where they are exempt from the duties of the Customs Tariff or are likely to benefit from it if the imported goods originate from non-Community countries European Economic.

9. Imports made by international organizations recognized by Spain, and those made by its members with diplomatic status, with the limits and under the conditions laid down in the International Conventions for which such Bodies or in the Agreements on the premises of such bodies.

10. Goods imported under international conventions in force in Spain in the field of cultural, scientific or technical cooperation.

11. Goods imported under the International Conventions in force in Spain to facilitate traffic with neighbouring countries.

Article 22. Exemptions in other customs procedures.

1. The following operations are exempted provided that they are carried out in accordance with the provisions of the customs legislation:

1. Imports of goods into transit or temporary importation arrangements and those made under the temporary admission system, where the goods to which they relate remain in the systems or systems indicated without being consumed or used for purposes other than those for which their import was authorised.

By way of derogation from this exemption, the by-products corresponding to the system of temporary admission which are taxed with the duties of the Customs Tariff or which were in the case of imported goods originating in non-member countries belonging to the European Economic Community.

The exemption may be conditional upon the lodging of a sufficient guarantee to secure the payment of the tax liability resulting from the non-compliance with the requirements laid down for each of the schemes or schemes. cited.

2. º Imports of goods that are placed in Franca Zone, Franco Deposit or Deposits of Customs, while remaining under such regimes without being used or consumed.

3. The performance of services, including transport and ancillary operations, directly related to the exempted imports covered by paragraphs 1 and 2 above.

4. The services provided by intermediaries acting on behalf and on behalf of third parties, when they intervene in the operations described in paragraphs 1, 2, 2 and

.

2. Temporary imports which are taxed with part of the customs tariff duties corresponding to the import or consumption or which would be if the imported goods were originating in non-Community countries The European Economic Community shall be subject to the payment of the value added tax in the same proportion as that laid down for those rights.

The temporary imports referred to in the preceding paragraph and the goods covered by them shall benefit from the exemptions set out in paragraphs 3 and 4 of the preceding paragraph 1 and in Article 11. Number 2 of this Law. The exemption does not apply to the provision of services which are intended to be used or transferred for any title of the goods.

3. The benefits of services that are declared exempt in numbers 1 and 2 of this article shall not, in any case, include those that are exempt under the provisions of Article 8 of this Law.

CHAPTER III

Devengo

Article twenty-three. Accrual on imports.

1. In the import of goods the tax is stopped and the obligation to contribute at the moment when the importers request from the Customs the dispatch of the goods, prior to the conditions established in the legislation customs.

2. In the final importation of goods which are in the customs or customs of transit, temporary importation, temporary admission, Zona Franca, Depository Franco or Deposits of Customs, the accrual of the tax will be produced in the the time at which such importation is requested, where the requirements laid down in the customs legislation are also met.

3. In transactions defined as imports in Article 20 (2) (2), (3), (3), (4) and (5) of this Law, the accrual shall take place at the time when the disaffection, the change of conditions or the changes in the conditions of the acquisitions referred to in those paragraphs.

CHAPTER IV

The taxable person

Article twenty-four. Taxable persons and persons responsible for imports.

1. Tax taxable persons who make imports are taxable persons.

They are considered importers, provided that, in each case, the requirements laid down in the customs legislation are met:

1. The recipients of the imported goods, whether they are acquirers, transferee or owners of the goods, or consignees acting in their own name on the importation of such goods.

2. º Travelers for goods that drive when entering the Spanish peninsular territory or Balearic Islands.

3. The owners of the goods in the cases not referred to in the previous paragraphs 1 and 2.

2. They will be responsible for the Tax:

1. Solidarily:

a) Garant associations in the cases determined in the International Conventions.

b) RENFE, when acting on behalf of third parties under International Conventions.

c) Customs agents who manage dispatches without the general authorization provided for in the General Customs Income Ordinance.

(d) The consignees of the imported goods when they act on behalf and on behalf of others.

2. Subsidaily:

Customs agents in the manner provided for in the provisions applicable to them.

CHAPTER V

Tax Base

Article 25. The tax base. Rule of thumb.

On imports, the tax base will result from adding to the "Customs Value" the following concepts as they are not included in the same:

1. The rights of the Customs Tariff and any other charges or taxes accrued on the occasion of importation, with the exception of the Value Added Tax.

The additional Customs Tariff duties will be those contained in that Arancel and that they will actually be applied.

2. The ancillary and complementary expenses, such as commissions, packages, ports, transports and insurance that occur from the entrance into the Spanish mainland or the Balearic Islands to the first place of destination in the interior of these territories.

For these purposes, it shall be considered as the first place of destination that appears in the transport document under which the goods are placed in the Spanish peninsular territory or in the Balearic Islands and, failing that, the the first place where the unbundling or separation of the cargo is carried out within the territory of those territories.

Article twenty-six. The tax base. Special rules

1. The tax base on imports for consumption of goods that had previously been placed under the temporary importation arrangements, transit, temporary admission system for the inward processing traffic, Zona Franca, Deposit Franco or Deposits of Customs, shall be determined as follows:

1. In the case of goods originating in the Canary Islands, Ceuta or Melilla, or abroad, the tax base shall be calculated in accordance with the provisions of Article 25 above.

2. If the goods were originating in the Spanish peninsular territory or the Balearic Islands and had been subject to an exemption from the tax, the taxable amount shall be the sum of the consideration of such delivery and of the services directly related to it, determined in accordance with the rules contained in Articles 17 and 18 of this Act.

3. Where goods imported into consumption are partly made up of goods covered by paragraph 1. above and in part by goods covered by paragraph 2. the taxable amount shall be the sum of the each of them, determined in accordance with the rules referred to in paragraphs 1. or 2. which are applicable according to their origin.

4. If the goods imported into consumption were originating in the Spanish mainland or the Balearic Islands and had not been subject to a prior delivery, the taxable amount shall be made up exclusively of the the goods referred to in paragraphs 1 and 2 above which, where appropriate, have been incorporated into them, determined in accordance with the rules of those paragraphs which are applicable according to their origin.

5. In the taxable amount of the imports to consumption of the goods referred to in the preceding paragraphs shall also be integrated, and provided that they are not included in the above concepts, the consideration for the provision of services directly related to the goods imported, where such benefits have been exempt from the tax and have been effected while they have remained under the These customs procedures. Such consideration shall be determined in accordance with the rules of Articles 17 and 18 of this Law.

6. When one or more deliveries of the imported goods were produced while the goods were found under the indicated customs procedures, the tax base will be added to the following concepts:

(a) The consideration of the delivery of the goods made to the importer, increased with that of the goods incorporated in the previous ones by the importer himself until the moment of importation if the latter had been acquired by virtue of transactions exempt from the tax. If the consideration for the goods originating from abroad, the Canary Islands, Ceuta or Melilla is lower than their respective "Customs Securities", these values shall be taken for the determination of the taxable amount.

(b) The consideration of services directly related to the reference goods and which have been borrowed from their delivery to the importer until the time of import.

The consideration referred to in points (a) and (b) above shall be determined in accordance with the rules of Article 17 and 18 of this Law.

(c) The rights, charges and ancillary and ancillary expenses referred to in Article 25 (1) and (2) of this Law.

2. For the consumption imports referred to in Article 20 (5) of this Law, the tax base shall be determined by applying the rules applicable to the number 1 of this Article, in accordance with the origin of the goods.

3. Reimports of goods which do not appear in the same state in which they came out, for having been the subject of a repair, work, processing or incorporation of other goods in the Canary Islands, Ceuta, Melilla or abroad, the tax base will be determined by the sum of the following concepts:

1. The taxable amount corresponding to the tariff duties or which would correspond to those duties if the work or additions indicated had been carried out in a country outside the European Economic Community and,

2. The rights, taxes and ancillary and ancillary expenses included in Article 25 (1) and (2) of this Law.

4. The time to refer to the determination of the taxable amount or the components thereof shall be that of the tax accrual.

However, in the importation of the by-products resulting from the processes for the production of the temporary admission system, the determination of the tax base shall relate to:

a) When the main products obtained in such processes are exported, at the time of export of these products.

b) When the main products are imported into consumption, that of the accrual to the import of these products.

5. The quotas paid in respect of imports of goods referred to in Article 22 (2) of this Law shall not be reduced from the quota resulting from the importation into consumption of such goods.

TITLE IIl

The tax rate

Article twenty-seven. General tax rate.

1. The tax shall be required at the rate of 12 per 100, except as provided for in the following Articles.

2. The Value Added Tax rates may be modified in the Budget Laws of each year.

3. The tax rate applicable to each transaction shall be that in force at the time of the accrual.

Article twenty-eight. Reduced rate.

The type of 6 per 100 will be applied to the following operations:

1. The deliveries or, where appropriate, the imports of the following goods:

1. Products which are likely to be common and suitable for human nutrition, including mineral or potabilised water, except alcoholic and refreshing beverages.

For the purposes of this Tax, an alcoholic beverage is understood to be all liquid suitable for human consumption by ingestion containing ethyl alcohol, and by refreshing beverage as defined in the Spanish Food Code and its Additional regulations.

For the purposes of this paragraph 1. no consideration shall be given to tobacco food.

2. ° The natural materials or processed products that are suitable for animal feed.

3. The animals, seeds and material of animal or vegetable origin susceptible, all of them, to be customary and suitable for the production or reproduction of the products referred to in paragraphs 1 and 2. above.

Fertilizers are not considered to be included in the previous paragraph.

4. º Books, magazines and newspapers.

5. The medicines and medical equipment defined in the legislation in force.

6. Invalid cars referred to in Article 4. of the Circulation Code and wheelchairs also for use of invalid ones.

7. The dwellings, including garages and attachments thereof.

8. The objects that for their characteristics and configuration can only be used as a school material, except for electronic devices.

2. The capabilities of the following services:

1. The land transport of passengers and their luggage.

2. The services of hospitality and camping, the restaurants and, in general, the supply of meals or drinks to consume in the act.

Services provided by five-star hotels and five-holder restaurants are excepted.

3. The ones provided by authors, performers, artists, directors and technicians, who are natural persons, to the producers of film films that are capable of being exhibited in showrooms and works agencies theatrical and musical.

4. The exhibition of cinematographic films and the representation of theatrical or musical works in premises exclusively dedicated to such activities, except the exhibition of cinematographic films in "X" rooms.

5. The urban cleaning and garbage collection services.

6. The services provided by trade fairs and exhibitions.

3. The execution of works, with or without the provision of materials, results from contracts directly formalized between the promoter and the contractor that have the exclusive object of the construction or rehabilitation of dwellings.

4. The production, import, distribution and transfer of rights of cinematographic films, which may be displayed in showrooms, except those rated "X".

Article twenty-nine. Increased type.

The type of 33 per 100 will be applied to the following operations:

1. The deliveries, leases or imports of the goods listed below:

1. Motor-driven vehicles for road traffic, except:

a) Those dedicated to the transport of goods.

(b) Those engaged in the collective transport of passengers whose capacity exceeds nine seats, including that of the driver.

c) Autocabs.

(d) Those which, objectively considered, are of exclusive industrial, commercial, agricultural, clinical or scientific application.

e) The "jeeps" types duly approved by the Ministry of Economy and Finance.

(f) Vehicles whose fiscal power does not exceed 12 CV.f. acquired by disabled holders of the relevant driving licence and for their exclusive use, provided that at least four years have elapsed since the last purchase of a vehicle under similar conditions.

The application of the ordinary type will require recognition of the right by the Finance Administration, after certification of the invalidity by the National Institute of Social Services.

The provisions of the preceding paragraphs shall apply only to vehicles specially fitted for use by the disabled or to the automatic clutch.

g) Two-or three-wheel vehicles whose cylinder capacity is equal to or less than 125 cubic centimetres.

2. º Boats and recreational or nautical-sports vessels which are more than nine metres in length.

3. Aircraft, aircraft, sailboats and other aircraft, except:

(a) Aircraft which, due to their technical characteristics, can only be used for agricultural or forestry work.

b) Those acquired by the State, Autonomous Communities, Local Corporations or by Companies or Public Bodies.

c) Those acquired by Air Navigation Companies.

4. Joyas, alhajas, precious and semi-precious stones, natural or cultured pearls, objects made wholly or partly with gold or platinum metals, as well as fine jewellery containing precious stones or those referred to above metals, even in the form of a bath or a plating.

Not included in the previous section:

(a) Objects containing precious metals in the form of bathed or plated with a thickness of less than thirty-five microns.

b) Damasquinates.

c) The objects of exclusive industrial, clinical or scientific application.

5. Personal clothing or ornament clothing, made of leather of a sumptuous character, except those that are exclusively with a toilet or waste in terms that are regulated by law.

2. The production, import, distribution, transfer of the right and display of the film films qualified to be displayed in "X" rooms.

TITLE IV

Dedutions and Returns

CHAPTER FIRST

Deductions

Article thirty. Nature and scope of application.

The taxable persons may deduct from the value added tax contributions due as a result of the supply of goods and services that they carry out in Spanish peninsular territory and Balearic Islands which, on the basis of such assets or services, have been incurred in the acquisition or import of goods or services which have been provided to them, in so far as such goods or services are used for the purposes of carrying out the operations subject to, and not exempt from, the tax or other operations specified in Article 32 (3) this Act.

Article thirty-one. Subjective requirements of the deduction.

1. They may only make use of the right to deduct taxable persons who, having the status of employers or professionals, have submitted the declaration provided for in Article 66 (1) (1) of this Law and have effectively initiated the the supply of goods or services which constitute the object of their activity.

2. The quotas previously supported at the beginning of the operations referred to in the preceding number may be deducted in accordance with Article 46 of this Law.

3. The exercise of the right of deduction for taxable persons to whom the special schemes governed by Title V of this Law apply shall be carried out in accordance with the rules laid down in that Title for each of the of them.

Article thirty-two. Tax deductible fees.

1. The taxable persons referred to in the preceding Article may deduct the value added tax dues payable in the Spanish peninsular territory or the Balearic Islands which they have borne by direct impact on their acquisitions of goods or services provided to them.

It will also be deductible from the same tax payable in that territory and satisfied to the Public Finance by the taxable person in the following cases:

1. º On imports.

2. º In the cases referred to in Articles 6, number 3, paragraphs 3. and 4. º, and 15, number 1, paragraph 2. of this Law.

2. In no case shall the deduction of the fees which have not been accrued on the basis of the right or the amount of the fees which are legally applicable.

3. The supported quotas shall be deductible in so far as the goods or services whose acquisition or import determines the right to deduction are used by the taxable person in carrying out the following operations:

1. º The carried out in the Spanish peninsular territory and Balearic islands as follows:

(a) Deliveries of goods and services subject to and not exempt from Value Added Tax.

(b) the provision of services whose value is included in the taxable amount of imports of goods within the meaning of Article 25 (2) of this Law.

(c) The supply of goods and services which are exempt under Articles 9 and 10 of this Law, as well as the other definitive exports of goods and shipments of goods of a character definitive to the Canary Islands, Ceuta or Melilla which are not intended for the performance of the operations referred to in paragraph 2. of this number 3.

(d) Those relating to the suspension of customs arrangements, to the Free Trade Zones, to the Deposits of Francs and to the Deposits of Customs and Deposits which are exempt from the Tax in accordance with the provisions of Article 11 (1) and (2) and the exempt services in accordance with Article 22, number 1, paragraphs 3. and 4., and number 2 of this Act.

(e) Insurance, reinsurance, capitalization and services relating to them, as well as banking or financial services, which are exempt under the provisions of Article 8 (1), paragraphs 16. and 18. of this Law, provided that the recipient of such benefits is not established in the European Economic Community or that the said operations are directly related to exports of goods to non-Community countries and (a) from the time when the goods are dispatched to the overseas destination.

(f) Services provided by travel agencies exempt from the Tax pursuant to Article 61 (3) of this Law.

g) Free deliveries of samples or items of low value, and the provision of free, fair, demonstration services for the promotion of business or professional activities.

2. º. Those made in the Canary Islands, Ceuta or Melilla or abroad that would give rise to the right of deduction if they had been carried out in the Spanish peninsular territory or the Balearic Islands.

4. Taxable persons may only deduct the tax which is satisfied as a result of imports or is incurred in the purchase of goods or services which are directly related to the pursuit of their business or professional.

5. The goods or services concerned shall be considered to be directly related to the pursuit of business or professional activity solely for the purpose of carrying out such activity.

Not only considered to be affected by a business or professional activity:

1. The goods that are intended for such activity and others of a non-business or professional nature for alternative periods of time.

2. º The goods or services that are used simultaneously for business or professional activities and for private needs.

3. The assets acquired by the taxable person who do not integrate into his business or professional assets.

4. The goods intended for the satisfaction of the personal or private needs of the business owners or their family members or of the staff dependent on them, with the exception of those intended for accommodation free of charge, at the premises or premises of the Company, of the staff responsible for the monitoring and safety of the company.

6. Except as provided for in paragraphs 1, 2 and 4, the goods or services which are used for private purposes in an ancillary and notoriously irrelevant

are exempted from the provisions of paragraph 5.

Article thirty-three. Exclusions and restrictions on the right to deduct.

1. They may not be deducted:

1. The fees incurred as a result of the purchase, import, lease, conversion, repair, maintenance or use of passenger cars and their trailers, motorcycles, aircraft or vessels sports or recreation, as well as accessories, spare parts, fuels, fuels and lubricants for such vehicles and other services relating to them.

The provisions of the preceding paragraph shall not apply to the following vehicles:

(a) Those intended exclusively for the carriage of goods.

(b) Those intended exclusively for the carriage of passengers by way of consideration, with the exception of the quotas supported by the use of such vehicles which shall in no case be deductible.

c) Those intended exclusively for the teaching of drivers.

d) Those intended by their manufacturers exclusively for the performance of tests, trials, demonstrations or sales promotion.

e) Purchased by independent commercial agents to target them exclusively for their professional displacements.

f) Purchased to be used exclusively for surveillance services.

2. The Fees supported by the travel or travel services of the taxable person himself, his staff or third parties, including those related to business or professional activity.

3. º The quotas supported on purchases or imports of food or beverages, or services of hotel, restaurant or entertainment, except where they are intended to be used or consumed by employees or third parties persons by way of consideration.

4. The fees incurred as a result of the acquisitions, leases or imports of the goods related to Article 29 of this Law not mentioned above, to which the tax rate is applicable increased, as well as manufactured tobacco, tapestries and objects of art and antiques as defined in Article 60 (2) of this Law.

5. º The quotas supported as a result of acquisitions of goods or services intended for care for clients, employees or third parties.

2. The following items are exempted from the previous number of acquisitions or imports of the following goods:

1. The ones that are objectively considered to be of exclusive industrial, commercial, agricultural, clinical or scientific application.

2. "2". The purpose of which is to be the subject of delivery or transfer of use, either directly or through transformation, by taxable persons who are used to such operations.

Article thirty-four. Formal requirements of the deduction.

1. Only taxable persons who are in possession of the supporting document of their right may exercise the right to deduct.

The right to deduction is considered as supporting documents:

1. º The original invoice issued by the person performing the delivery or providing the service.

2. The document proving the payment of the import tax.

3. The document issued by the taxable person in the case provided for in Article 67 (2) of this Law.

4. º The original receipt signed by the holder of the agricultural, forestry, livestock or fishing operation referred to in Article 58, number 2, of this Law.

2. These documents shall only justify the right of deduction if they comply with the provisions of this Law and the regulatory standards laid down for their development.

3. In the case of goods acquired in common by several taxable persons, each acquirer may deduct the corresponding proportional share, provided that in each of the copies of the invoice or supporting document it is In a separate and separate form, the share of the taxable base and the share of each of the acquirers in common.

4. In no case shall the right to deduct in excess of the express and separately recorded tax share which has been passed on or, where appropriate, satisfied according to the document justifying the deduction, be admissible.

Article thirty-five. Birth of the right to deduct.

1. The right to deduction is born at the time the deductible fees are paid.

2. However, in the case of imports of goods and in the cases provided for in Article 6 (3), (3) and (4), and in Article 15 (1) (2), both of this Law, the right to deduct shall be incurred at the time when the subject Make the payment of the deductible fees.

Article thirty-six. Exercise of the right to deduction.

1. In the statements-settlements corresponding to each of the settlement periods, the taxable persons may deduct overall the total amount of the deductible fees incurred during that period of the total amount of the Value added tax due during the same period of liquidation in the Spanish peninsular territory and the Balearic Islands as a result of the supply of goods or services provided by them.

2. Deductions shall be made on the basis of the foreseeable destination of the goods and services acquired, without prejudice to their subsequent rectification if that was altered.

3. The right of deduction may be exercised only in the declaration-settlement relating to the period of liquidation in which the holder has borne the deductible or successive instalments, provided that the period of one year has not elapsed. counted from the birth of that right.

The provisions of the preceding paragraph shall be without prejudice to the following numbers 5 and 6.

4. The deductible fees shall be deemed to be supported at the time when the holder receives the corresponding invoice or, where appropriate, the document justifying the right to deduct.

In the cases referred to in Article 35 (2) of this Deductible Dues Act, the right to deduction shall be deemed to be supported at the time the right to deduction is born.

5. Where the amount of the deductions exceeds the amount of the contributions due in the same period, the excess may be deducted in chronological order in the immediately subsequent declarations-settlements, in the maximum amount possible in each of them and up to a period of five years, counted from the date of termination of the period in which the right to deduction originated.

However, the taxable person may opt for the return of the existing balance in his favour when it comes under the provisions of this Act.

6. In the case of errors or modifications of bases or tax quotas supported, the correction in the deductions shall be made in the form and time limits to be determined in accordance with the rules.

Article thirty-seven. Scheme of deductions in differentiated activities.

1. Taxable persons who carry out differentiated business or professional activities shall independently apply the deductions scheme in respect of each of them.

However, when purchases of goods for common use are made in several sectors of differentiated activity, it will be applicable to the provisions of Article 40, numbers 2 and below, of this Law to determine the percentage of deduction applicable to the acquisitions of such goods, taking into account the full effect of the business and professional operations carried out by the taxable person.

2. For the purposes of the preceding number, the following number shall be considered as business or professional activities as referred to in Article 6 (3) (3) (a) and (b) of this Law.

3. The Administration may authorise the application of a system of deduction common to all business or professional activities differentiated by a taxable person himself, in cases and with the requirements to be determined regulentarily.

Article thirty-eight. Pro rata rule.

The pro rata rule shall apply where the taxable person, in the course of his business or professional activity, jointly makes supplies of goods or services which give rise to the right of deduction and other operations of a similar nature which do not enable the exercise of that right.

Article thirty-nine. Pro rata classes and application criteria.

1. The pro rata rule has two modes of application: the general pro rata and the special pro rata.

The special pro rata shall only apply in the cases referred to in the following numbers 2 and 3 of this Article. In other cases, the general pro rata shall apply.

2. Taxable persons may choose to apply the special pro-rata rule in the form that is determined to be regulated.

3. The tax administration may require the taxable person to apply the special pro rata in the following cases:

1. º When simultaneously performing distinct economic activities for the purpose of their object.

2. When the application of the general pro-rata is caused by significant distortions in order to the application of the tax.

The relevant agreement shall be notified to the person concerned before 1 December of the year preceding the year in which it is to have effect.

Article forty. The overall pro rata.

1. In the case of application of the rule of general pro-rata, the deduction shall relate only to the part of the tax which, borne in each liquidation period, corresponds to the percentage which the amount of the transactions giving rise to the deduction represents the total of those made by the taxable person.

2. The percentage of the deduction referred to in the preceding number shall be determined by multiplying by one hundred the result of a fraction in which they appear:

1. º In the numerator, the total amount, determined for the corresponding year, of the transactions originating in the right to the deduction, made by the taxable person in the course of his business or professional activity or, where appropriate, in the relevant differentiated activity.

2. º In the denominator, the total amount, determined for the same period of time, of the transactions performed by the taxable person in the exercise of his business or professional activity or, where appropriate, in the activity differentiated, including those which do not give rise to the right to deduct.

The resulting deduction pro rata will be rounded up to the top unit.

3. For the determination of this percentage, it shall not be computed in any of the terms of the relationship:

1. º Operations from establishments located outside the Spanish peninsular territory and Balearic Islands.

2. The Value Added Tax quotas that have directly taxed the operations referred to in the previous number 2.

3. º The amount of the deliveries of those investment goods that the taxable persons have used in their business or professional activity.

4. º The amount of real estate or financial transactions that do not constitute a typical business or professional activity of the taxable person.

They shall have the consideration of financial transactions for these purposes as described in Article 8, No. 1, paragraph 18. of this Law.

5. º Imports and acquisitions of goods or services.

4. For the purposes of the calculation of the pro rata, the total amount of transactions shall be the sum of the consideration for the same, determined as laid down in Articles 17 and 18 of this Law, even in respect of exempt and non-taxable transactions.

In the case of shipments of goods of a definitive nature to the Canary Islands, Ceuta or Melilla or of definitive exports not covered by Article 9 of this Law, the value of the operation shall be taken as the amount of the operation Spanish peninsular territory and Balearic islands of the exported products, determined in accordance with Article 18 (1) of this Law.

5. In the case of the execution of works with the contribution of materials, carried out outside the Spanish peninsular territory or Balearic Islands, the value of the operation shall be taken in the interior of the Spanish peninsular territory and the Balearic Islands of the materials sent definitively to the Canary Islands, Ceuta or Melilla or exported abroad, as determined in accordance with Article 18 (1) of this Law.

6. In order to make the temporary imputation, the rules on the accrual of the tax laid down in Article 14 of this Law shall apply in respect of all transactions included in the preceding numbers.

However, the supply of goods to the Canary Islands, Ceuta or Melilla or to export, exempt from the tax pursuant to Article 9 of this Law, and the other final shipments or exports of the goods shall be understood to have been carried out at the time when the corresponding request for departure is accepted by the Customs Office.

Article forty-one. Procedure of the general pro rata.

1. The provisional deduction pro rata for each calendar year shall be determined on the basis of the operations of the preceding year.

2. Except as provided for in Article 46 of this Law, taxable persons who are unable to calculate such pro rata for not having commenced their operations subject to the tax during the preceding year, or who are unable to apply the pro rata pro rata operations of the preceding year because the proportion which was given in the year was significantly altered, may be deducted by applying a provisional percentage approved by the Administration in the form which it regulates set.

3. In the last settlement of the tax corresponding to each calendar year, the taxable person shall calculate the proportion of the final deduction on the basis of the transactions carried out during that period and shall apply the ensuing rules on deductions. provisional.

4. The deductible proportion determined in accordance with the preceding numbers of this Article shall apply to the shares supported by the taxable person during the corresponding calendar year, whichever is the date of the acquisition of the the goods or services.

The provisions of the foregoing paragraph shall not apply in respect of non-deductible fees under Article 32, numbers 2, 4, 5 and 6, and in Article 33 of this Law.

Article forty-two. The special pro rata.

The exercise of the right to deduct in the special pro rata will be adjusted to the following rules:

1. The tax quotas incurred in the purchase or import of goods or services used exclusively in the conduct of transactions originating in the right to deduction may be deducted in full.

2. The tax quotas incurred in the purchase or import of goods or services used exclusively in the conduct of transactions which do not give rise to the right to deduct may not be deducted.

3. The tax quotas supported in the purchase or import of goods or services used only in part in the conduct of transactions originating in the right to deduction may be deducted in the proportion resulting from the application of the overall amount of the same percentage as referred to in Article 40, numbers 2 and below, of this Act.

The application of this percentage will be in accordance with the procedural rules set out in Article 41 of this Law.

Article forty-three. Deductions for investment goods and regulation thereof.

1. Taxable persons may deduct the tax shares which are incurred in the purchase or import of goods which are regulated as investment in accordance with the rules applicable to goods of another type.

2. However, the deductible quotas must be regulated during the four calendar years following the one in which the actual use or entry into operation of the said goods is initiated when, between the definitive pro rata each of those years and the one that prevailed in the year in which the impact was sustained, there is a difference of more than 10 percentage points.

The regularisation referred to in the preceding paragraph shall also apply where the taxable persons have made, during the year of acquisition of the investment goods, only transactions which give rise to the right to Deduction or exclusively transactions which do not originate in such a right, and subsequently for any of the four years following that in which the effective use or entry into operation of such goods is initiated, is amended situation, as provided for in that paragraph.

3. In the case of land or buildings, the regularisation shall relate to the nine years following that in which the commencement of its use took place.

4. The period of regularisation of the tax quotas which have been passed on after the start of the effective use or the entry into operation of the investment goods shall begin to be counted from the year in which it occurred. such impact.

5. The income or, where applicable, additional deductions resulting from the adjustment of deductions for investment goods shall be made in the declaration-settlement for the last settlement period of the calendar year to which the

Article forty-four. Procedure to practice the regularization of deductions for investment goods.

The regularisation of the deductions referred to in the previous article shall be carried out as follows:

1. Known as the percentage of deduction definitively applicable in each of the years in which the regularisation is to take place, the amount of the deduction to be determined shall be determined if the impact of the quotas has been supported in the year considered.

2. This amount shall be subtracted from the deduction made in the year in which the impact took place.

3. The positive or negative difference shall be divided by five or, in the case of land or buildings, by ten, and the resulting ratio shall be the amount of the additional income or deduction to be made.

Article forty-five. Transfer of investment goods during the period of regularisation.

1. In the case of the supply of investment goods during the period of regularisation, it shall be carried out at one time for the time of that period remaining to elapse.

To this effect, if the delivery is subject to the Tax and not exempt, the investment property shall be deemed to have been used exclusively in the conduct of transactions which give rise to the right to deduct throughout the year in which it is made such delivery and in the remaining delivery until the end of the regulatory period.

However, the difference resulting from the application of the provisions of the preceding paragraph shall not be deductible as soon as it exceeds the quota passed on to the acquirer in the transmission of the good to which it relates.

If the delivery is exempt or not subject, the investment property shall be deemed to have been used exclusively for the conduct of transactions which do not cause the right to deduct throughout the year in which such delivery was made and in the remaining until the end of the regularisation period.

The supply of investment goods benefiting from the exemptions provided for in Article 9 (1) and (2) of this Law, to which the rule contained in the law applies, is exempted from those provided for in the preceding paragraph. Paragraph 2. of this number 1 corresponding to the deliveries subject to and not exempt. The deductions in this case may not exceed the quota that would result from applying the current tax rate to the internal value of the goods exported or sent to the Canary Islands, Ceuta or Melilla.

The regularisation referred to in this Article shall be carried out even if the pro rata rule has not been applied in the preceding years.

2. The provisions of this Article shall not apply in the case of transfers of investment goods not subject to the Tax pursuant to Article 5 (1) of this Law, with the acquirer automatically subrogated to the position of the relay.

In such cases, the applicable deduction pro rata to practice the regularisation of deductions of such goods during the same year and the remaining ones may not be higher than that resulting from the average of the applications in the Company transmitted during the last five years immediately above.

3. The provisions of this Article shall apply where the investment goods are transmitted before their use by the taxable person.

Article forty-six. Previous deductions at the beginning of business or professional activities.

1. Employers or professionals may deduct the fees previously incurred at the beginning of the actual commencement of the supplies of goods or services which constitute the object of their business, in accordance with the provisions of this Article.

The above paragraph is excepted from the preceding paragraph, the shares supported as a result of the acquisition of land, which will be deductible from the moment when the transactions subject to the Tax on conditions to be established in a regulated manner.

2. The fees incurred prior to the filing of a pre-declaration at the beginning of the business or professional activity in the manner determined by regulation shall not be deductible.

3. Until the beginning of the transactions subject to the tax, an interim percentage of the deduction to be determined by the administration shall be applied, on a proposal from the taxable person, taking into account the characteristics of the future activities business or professionals.

4. The provisional deductions shall be adjusted by applying the final percentage overall corresponding to the period of the first three calendar years of the year of the activity.

In the case of investment goods, deductions resulting from the application of the preceding paragraph shall be regulated in accordance with the provisions of Article 43 of this Law for the missing time of the corresponding period of regularisation.

5. Where the investment property is the subject of delivery prior to the termination of its own regulatory period, the rules of Article 45 of this Law shall apply, without prejudice to the provisions of the preceding numbers.

6. The provisions of this Article shall apply in respect of transactions carried out by taxable persons before the commencement of their operations in wholly differentiated sectors of activity.

7. If the delivery of goods or services is interrupted for one year or more, the rules laid down in the preceding numbers relating to the resumption of operations shall apply.

8. Employers or professionals may request the return of the fees which are deductible under the provisions of this Article, in accordance with the provisions of Article 48 of this Law.

9. Taxable persons who have benefited from the deduction scheme provided for in this Article shall not be eligible for the special arrangements for agriculture, livestock farming and fishing for a period of three years from the start of operations subject to the Tax.

Article forty-seven. Deduction of deductions.

1. Taxable persons may rectify the deductions made in the cases of error or variation in the amount of the fees to be deducted.

Rectification will be mandatory when it involves a minorage of the deducted fees.

2. The correction of deductions determining an increase of previously deducted quotas may be effected only if the taxable person is in possession of the corresponding invoice or supporting document issued in accordance with the provisions of the Article 16, number 6 of this Law. In the case of errors in the settlement of the quota, the correction may not be made after the expiry of the period of one year from the date of issue of the invoice or equivalent document.

CHAPTER II

Returns

Article forty-eight. Returns in general.

1. Taxable persons who have not been able to make the deductions arising from a liquidation period in accordance with the procedure laid down in Article 36 of this Law, for exceeding the amount of the same in respect of the contributions due, have the right to request the return of the balance to their existing advantage at 31 December of each year in the form specified in the Tax Regulation.

2. The right to repayment of the balance in favour of the taxable persons existing at the end of each settlement period may be established with reference to certain sectors or undertakings.

Article forty-nine. Returns on export.

1. Taxable persons who, during the preceding calendar year, have made final exports to the Canary Islands, Ceuta or Melilla for a total amount exceeding 20 million pesetas, shall have final exports to the Canary Islands, the right to return the balance to its existing advantage at the end of each settlement period up to the limit resulting from the application of the percentage corresponding to the general tax rate of the total amount, in that period, of the exports and shipments mentioned. In the case of taxable persons who are exporters of the products described in the first subparagraph of Article 29 (1) (4) of this Law, the limit shall be raised to the amount resulting from the application of the rate corresponding to the increased tax on the total amount of such shipments and exports.

In the Budget Law of each year, the limits set in the previous paragraph may be modified.

2. For the purposes of the preceding number, the amount of exports and shipments indicated is the total sum of the corresponding consideration or, failing that, of the values within the goods exported and those sent to the Canary Islands, Ceuta and Melilla.

3. The procedure for the exercise of the right laid down in the preceding paragraph shall be determined.

Article fifty. Guarantees of returns.

The Tax Administration may require from taxable persons the provision of sufficient guarantees in the cases of returns referred to in Articles 48 and 49 of this Law.

Article fifty-one. Refunds to persons established in the Canary Islands, Ceuta, Melilla or other Member States of the European Economic Community.

1. Employers or professionals not established in the Spanish peninsular territory or the Balearic Islands may exercise the right to refund of the value added tax which they have satisfied or, where appropriate, have been passed on to them. those territories, in accordance with the provisions of this Article and in the rules of procedure to be laid down in regulation.

2. They are requirements for the exercise of the right to return referred to in the preceding number:

1. º That the persons or entities intending to exercise it are established in the Canary Islands, Ceuta, Melilla or other Member States of the European Economic Community.

2. Do business or professional activities subject to Value Added Tax or an analogous tribute in those territories.

The performance of such activities must be credited in the form that is determined to be regulated.

3. º That during the period referred to in the application, the interested parties have not made in the Spanish peninsular territory or Balearic Islands deliveries of goods or services subject to the Tax on the Value Added other than those listed below:

(a) The transactions in which the taxable persons of the tax are the persons for whom they are made, as provided for in Article 15 (1), paragraph 2. of this Law.

(b) The transport and services of ancillary services to the same, exempt under the provisions of Articles 9, except number 2; 10; 11, numbers 1 and 2; 21, number 7, and 22.

3. The natural or legal persons in which the requirements described in the preceding numbers are met shall be entitled to apply for the refund of the value added tax which they have incurred in the purchase or import of goods or goods. the services which have been provided to them in the Spanish peninsular territory or the Balearic Islands during the period of time to which the application corresponds, in so far as the goods or services are used for the purposes of operations described in Article 32 (3) (1) (b), (c) and (d) and Article 32 (2) of this Regulation Law, or those referred to in point (a) of the previous paragraph 2 (3).

For the determination of the quotas to be returned, the actual and actual destination of the goods or services purchased or imported will be treated, without the regulatory norms of the pro rata rule being applicable to these effects. contained in this Law.

4. The limitations and exclusions of the right to deduct provided for in Article 32, numbers 2, 4 and 5, and in Article 33 of this Law, shall apply to the refunds regulated in this article.

5. Refund applications may only relate to the immediately preceding settlement period or calendar year.

6. Persons or Entities who intend to make use of the right to return regulated in this article must first appoint a legal representative resident in Spain, at whose charge will be the fulfilment of the formal or (a) the relevant procedure, which shall be jointly and severally liable with the person concerned in cases of improper return.

Public Finance may require such representative to be sufficient for these purposes.

7. Refund applications shall not be eligible for a total amount less than the figure to be determined by regulation.

TITLE V

Special Regimes

CHAPTER FIRST

Simplified regime

Article fifty-two. Simplified scheme.

1. The simplified scheme may be granted by taxable persons, natural persons, whose total volume of operations during the immediately preceding calendar year would not exceed 50 million pesetas.

The Budget Laws of each year may modify the billing limit set out in the previous paragraph.

2. The simplified scheme shall apply to the economic sectors and to the business or professional activities set out in the Tax Regulation.

3. The option under the simplified scheme shall be exercised within the time limits and in such a way as to be determined in accordance with the rules and shall take effect until it is revoked. This option may not be revoked within three years.

Article fifty-three. Content of the simplified scheme.

1. For the purposes of applying the special rules laid down in this Chapter, the minimum amount of the value added tax and, where appropriate, the amount of the equivalence to be entered by the Member State shall be determined by an objective estimate. a taxable person during each calendar year in which the special scheme is applicable.

2. The objective determination of the quotas referred to in the preceding number shall be based on the indices or modules which, for each economic sector or for each business or professional activity, are fixed by the Ministry of Economy and Finance.

3. If the actual amounts of the quota to be entered by the taxable person checked by the Administration are different from those declared by the taxable person in accordance with the provisions of the preceding number 2, the settlement shall be carried out (a)

the extent that it does not comply with the provisions of this Annex;

4. In the event of omission or distortion in the accounts of an operation by a taxable person who has not opted for the simplified scheme, the tax payable charges may not be lower than those resulting from the application of that scheme, without prejudice to the penalties provided for.

5. Taxable persons who have opted for the simplified scheme and who have incurred in default or distortion of the indices or modules referred to in the preceding number 2 shall be obliged to pay the tax quotas resulting from the application of that scheme, without prejudice to the penalties provided for.

6. Imports and transmissions of real estate and investment goods shall be excluded from the simplified scheme.

7. This simplified scheme will be regulated and the formal and registered obligations to be met by the taxable persons covered by it will be determined.

Article fifty-four. Determining the volume of operations.

1. For the purposes of Article 52 of this Law, the total amount, excluding Value Added Tax and the Equivalence Charge, of the supplies of goods and services, including the exempt, made by the taxable person in all his business and professional activities, the accrual of which would have occurred during the corresponding calendar year.

2. For the purpose of determining the volume of transactions, the financial assets referred to in Article 8 (1), paragraph 18. of this Law and the supply of qualified goods shall not be counted as occasional transactions. as investment in respect of the transmitte.

CHAPTER II

Special arrangements for agriculture, livestock and fisheries

Article fifty-five. Special arrangements for agriculture, livestock and fisheries.

1. The holders of agricultural, forestry, livestock or fishing holdings shall be subject to the special arrangements provided for in this Article, except for the waiver.

The waiver will produce effects as soon as it is not revoked by the person concerned and, in any case, for a minimum period of three years.

2. For the purposes of the preceding number, agricultural, forestry, livestock or fishing holdings shall be regarded as directly obtaining natural products, plants or animals from their crops, holdings or catches and, in particular, the following:

1. º Those that carry out agricultural activities in general, including the cultivation of ornamental, aromatic or medicinal plants, flowers, mushrooms, spices, seeds or plants, whatever the place of obtaining the products, even if they are greenhouses or nurseries.

2. The dedicated to forestry.

3. Animal husbandry, including poultry, beekeeping, cuniculture and sericculture, provided that it is linked to the exploitation of the soil.

4. The fishing holdings in fresh water.

5. The hatcheries of molluscs, crustaceans and fish farms.

3. The special arrangements referred to in the earlier numbers may not be extended to sea fishing, to commercial or non-commercial holdings or to independent livestock farming.

4. They shall not benefit from the special scheme provided for in this Article by any of their economic activities:

1. Who by themselves, or through third-party mediation, fully or partially submit products that obtain industrial processing, manufacturing or manufacturing processes.

No consideration shall be given to acts of mere preservation of the goods referred to in the preceding paragraph, such as refrigeration, freezing, drying, sorting, cleaning, packaging or packaging, uncascarated, uncut, chipped, chopped, disinfection or disinterment.

2. Who deliver the products they obtain mixed with others acquired from third parties, even if they are identical or similar in nature, except for those that are the subject of mere conservation.

5. Holders of agricultural, forestry, livestock or fishing holdings may benefit from the special scheme provided for in this Article, even if they perform at the same time other business or professional activities other than those described in the Numbers 1 and 2 above. In such a case, the special scheme shall only produce effects in respect of the activities to which it relates.

For the purposes of the preceding paragraph, different business activities shall be considered, inter alia, the following:

1. The placing on the market of natural products in fixed establishments located outside the place where the agricultural, forestry, livestock or fishing holdings are located.

2. The recreational activities of recreational character.

6. On an ancillary basis, the holders of the holdings described in number 2 of this Article may provide to third parties, with the means ordinarily used on their holdings and without loss of the option to the special scheme, services which contribute to the performance of their productions and, in particular, the following:

1. The work of planting, planting, cultivation, harvesting and transport.

2. The packaging and packaging of the products, including drying, cleaning, peeling, cutting, silage, storage and disinfection.

3. The breeding, keeping and fattening of animals.

4. º Technical assistance.

5. The leasing of the tools, machinery and facilities normally used for the production of their agricultural, forestry, livestock or fishing activities.

6. The elimination of harmful plants and animals and the fumigation of plantations and land.

7. The exploitation of irrigation or drainage facilities.

8. ° The logging, entresaca, splinter and tree cutting, forest cleaning and other complementary forestry services of a similar nature.

7. The provisions of the preceding number 6 shall not apply if, during the preceding year, the amount of turnover for the set of ancillary services provided exceeds 20 per 100 of the total volume of operations of the holding agricultural, forestry or livestock.

Article fifty-six. Content of the special arrangements for agriculture, livestock and fisheries.

1. The taxable persons to whom the special arrangements for agriculture, livestock and fisheries are applied shall not be subject, as regards the exercise of these activities, to the obligations for the payment of the tax and the payment of the tax. accounting or registration, or in general, any of those set out in the sixth and seventh titles of this Act.

The transactions referred to in Article 15 (1) (2) of this Law, the transmissions of immovable property and the obligations referred to in Article 15 (1) of this Law are exempted from the provisions of the preceding paragraph. Article 66, number 1, paragraph 1. of that Act.

2. The taxable persons referred to in the preceding number shall be entitled to receive a flat-rate compensation for the value added tax contributions which have been passed on to them in the purchase of goods or services which are have been lent to them. Such compensation shall be the amount resulting from the application of the percentage determined by the Government to the selling price of the natural products obtained on its holdings and the ancillary services referred to in Article 55 (6), of this Law.

For the purposes of determining such prices, indirect taxes on such operations and ancillary and ancillary expenses, such as charges, transport, insurance or financial charges, shall not be taken into account. separately to the buyer.

3. The fixing of the percentages referred to in the previous number will be made by the Government on a joint proposal from the Ministries of Agriculture, Fisheries and Food and the Economy and Finance, on the basis of the macroeconomic studies concerned. exclusively to agricultural, forestry, livestock or fishery entrepreneurs subject to this special scheme. In any event, the application of the percentages approved may mean that the whole of the employers who are subject to the special scheme may receive compensation in excess of the tax which they bear in the purchase of the goods or in the services that have been provided to them.

The government may establish a single percentage or differentiated percentages depending on the nature of the operations.

Article fifty-seven. Refund of compensation.

1. Employers or professionals who acquire natural products or ancillary services directly from taxable persons under the scheme shall be required to repay the compensation referred to in the previous Article. special agricultural, livestock or fisheries.

2. The provisions of the preceding number shall not apply where the taxable persons to whom the special arrangements for agriculture, animal husbandry or fisheries are applicable carry out deliveries of natural products from fixed commercial establishments located outside the place where they radiate their agricultural, forestry, livestock or fishing holdings.

3. The reimbursement of compensation shall be made at the time the deliveries or services referred to in the previous No 1 are made in the form that is determined to be determined.

4. In any event, the public finances shall reinstate the compensation for the final shipments to the Canary Islands, Ceuta or Melilla, as well as to the final exports by the taxable persons subject to this special scheme.

5. They shall not be required to repay the compensation referred to in this Article by the acquirers of the goods or recipients of the services listed below:

1. The taxable persons also covered by the agricultural, livestock or fisheries regime.

2. No. Those who do not have the status of employer or professional.

3. Tax taxable persons who perform exclusively exempt transactions of the same other than those listed in Article 32, number 3, of this Law.

6. Any disputes which may arise with reference to the compensation for this special scheme, both as regards the origin and the amount thereof, shall be considered to be of a tax nature for the purposes of the relevant economic-administrative claims.

7. The holders of agricultural, forestry, livestock or fishing holdings to whom the special rules laid down in this Chapter do not apply shall reintegrate the compensation unduly paid into the public treasury, without prejudice to the of the other obligations and responsibilities that are required of them.

Article fifty-eight. Deduction of compensation in the special scheme for agriculture, livestock and fisheries.

1. Taxable persons who have satisfied the compensation referred to in the preceding Article may deduct their amount from the fees payable for the operations they carry out in accordance with the provisions of the fourth paragraph of this Law in respect of Supported quotas.

Except as provided in the preceding paragraph, the taxable persons to whom the special arrangements for the Equivalence of Equivalence apply.

2. To exercise this right the taxable persons shall be in possession of a receipt issued by themselves for each acquisition, in the form and with the requirements to be determined regulatively.

The receipt must be signed by the provider.

3. The acquirers of the goods or services shall write down the receipts issued in a special register, within the time limit and in such a way as to be determined by regulation.

CHAPTER III

Special arrangements for used goods

Article fifty-nine. Special arrangements for the goods used.

1. Employers who habitually carry out transfers of used goods may choose to apply the special scheme provided for in this Article, subject to the provisions laid down in this Article and to the rules laid down in the rules laid down in this Article. for its development.

2. For the purposes of this Article, any used property of a movable nature which, having been used prior to the acquisition by the taxable person under this special scheme, is liable to new use, directly or after repair.

The following goods will not have the following condition:

1. Those acquired from other taxable persons, except in cases where the deliveries in respect of which the acquisition was made would not have been subject to or have been exempt from the tax.

2. º Those imported directly by the relay.

3. º Those that have been used, renewed or transformed by the taxable taxable person himself.

4. Industrial Process Waste.

5. The packaging and packaging.

6. º. Integrated in whole or in part by stones or precious metals, or by natural or cultured pearls.

7. º Recovery materials.

3. In the supply of used goods by taxable persons who have opted for the special scheme provided for in this Article, the taxable amount shall be 30 per 100 of the consideration determined in accordance with the provisions of this Article. provided for in Articles 17 and 18 of this Law.

However, the taxable person may choose to consider the difference between the consideration of the transfer and the acquisition of the well-transmitted, determined in accordance with the provisions of the Articles 17 and 18 of this Law and justified in the manner in which it is established. The option shall be exercised within the time limits and shall be determined in the implementing rules of this Law and shall have effect throughout the calendar year immediately thereafter.

In no case shall the tax base referred to in the preceding paragraph be less than 20 per 100 of the consideration of the given transmission, as set out in Articles 17 and 18 of this Act.

CHAPTER IV

Special scheme for art objects, antiques, and collection objects

Article sixty. Special regime of art objects, antiques and collectibles.

1. Taxable persons who habitually carry out supplies of artistic objects, antiques and collectors ' items of a movable nature may choose to apply the rules for determining the tax base provided for in Article 59 (3). of this Law, in the form that is regulated.

The provisions of the preceding paragraph shall not apply to the deliveries of the following goods:

1. º The built, renovated or transformed by the taxable person himself or on his own.

2. º. Integrated in whole or in part by natural or cultured pearls, stones or precious metals.

3. Those acquired from other taxable persons, except in cases where the deliveries in respect of which the acquisition was made would not have been subject to the tax or would have been exempt from it.

4. º Those imported directly by the taxable person.

2. For the purposes of the preceding number,

following definitions shall apply:

1. Art Objects: The paintings and drawings made by hand and the sculptures, prints, prints and lithographs, provided that, in all cases, they are original works.

2. Antiquities: Useful or ornamental furniture, excluding works of art and collectibles, which are more than one hundred years old and whose original fundamental characteristics would not have been altered by modifications or repairs carried out over the last hundred years.

3. "Collection Objects": Objects that present an archaeological, historical, ethnographic, paleontological, zoo, botanical, mineralogical, numismatic or philatelic interest and are likely to be part of a collection.

CHAPTER V

Special arrangements for travel agents

Article sixty-one. Special arrangements for travel agencies.

1. The special arrangements for travel agencies shall apply:

1. To operations carried out by travel agents when they act in their own name in respect of travellers and use goods delivered or services provided by other entrepreneurs in the course of the journey professionals.

2. The operations carried out by the tour operators in which the previous circumstances are present.

2. The special regime of travel agencies is not a waiver. The taxable persons to whom the special scheme applies shall not be eligible for the simplified special scheme.

3. Services provided by travel agents are exempt from the tax when the supplies of goods or services, acquired for the benefit of the traveller and used to make the journey, are carried out outside the territory of the European Economic Community.

In the event that the aforementioned supplies of goods or services are only partially carried out within the territory of that Community, only the part of the service provision of the agency shall be exempt from the exemption. corresponding to those made outside the European Economic Community.

4. The operations carried out by the agencies in respect of each traveller for the purpose of carrying out a journey shall be considered as a single service, even if several deliveries or services are provided in the framework of the said journey.

This benefit shall be deemed to be carried out at the place where the agency has established the seat of its economic activity or has a permanent establishment from which it carries out the operation.

5. The tax base will be the gross margin of the travel agency.

For these purposes, the agency's gross margin is the difference between the total amount charged by the customer, excluding the Value Added Tax that taxes the transaction, and the amount of cash, taxes included, supplies of goods or services which, carried out by other employers or professionals, are acquired by the agency for use in carrying out the journey and are directly for the benefit of the traveller.

For the determination of the gross margin of the agency the exempt transactions of the tax shall not be computed by virtue of the provisions of the preceding number 3.

6. The fee may not be entered on the invoice separately from the taxable amount and shall be understood in such a case to be included in the price of the transaction.

7. The taxable person shall determine the taxable amount by transaction, as provided for in the preceding number 5.

However, they may choose to determine on a global basis for each settlement period the taxable amount corresponding to the operations to which the special scheme applies and do not enjoy exemption under the following procedure:

1. The overall amount charged to customers, Value Added Tax included, corresponding to the transactions for which the accrual has occurred during the settlement period, the total cash amount shall be subtracted, taxes included, the supply of goods and services provided by other employers or professionals who, acquired by the agency in the same period, are used in the conduct of the journey and are in the interest of the traveler.

2. The overall tax base will be found by multiplying the resulting amount by one hundred and dividing the product by one hundred plus the general tax rate set out in Article 27 of this Law.

The deadlines and form for the exercise of this option will be determined.

8. Travel agencies to which this special scheme applies may practice their deductions under the terms set out in Articles 30 et seq. of this Act.

However, they will not be able to deduct the tax passed on purchases of goods and services that directly benefit the traveler.

9. Regulatory special rules may be laid down for formal, accounting or registration obligations of travel agencies.

CHAPTER VI

Special Retail Regimes

Article sixty-two. Special schemes for retail trade.

1. The special schemes for retail trade are as follows:

1. Proportional Determination Regime of the taxable bases.

2. º Equivalence Recarg Regimen.

2. The special schemes referred to in the preceding number shall apply to retail traders.

3. For the purposes of this Act, the taxable persons in whom the following requirements are met shall be considered as retail traders:

1. Do with habituality sales of movable or semi-moving goods without having undergone any process of manufacture, manufacture or manufacture, by themselves or through third parties.

2. º that the sum of the consideration for the deliveries of those goods to those who do not have the status of businessmen or professionals or to the Social Security, carried out during the previous year, has exceeded of 80 per 100 of the total of the realized.

4. For the application of the provisions of the preceding number, the following shall be deemed not to be processing operations:

1. The classification and packaging of products.

2. The placing of marks or labels, as well as the preparation and cutting prior to the delivery of the transmitted goods.

3. The manipulations to be determined regulatively.

5. Retail traders to whom the special arrangements for retail trade are applicable shall specify the appropriate tax rates and separate the share passed on to the equivalent invoices or documents they issue where the recipients of the same have the status of taxable persons.

Article sixty-three. Special arrangements for the proportional determination of the taxable bases.

1. Retail traders who make use of goods to which they apply different tax rates may choose to apply the system of proportional determination of the tax bases.

The provisions of the preceding paragraph shall not apply to retail traders subject to the special arrangements for the Equivalence Charge.

2. The taxable persons covered by this special scheme, when completing their declarations-liquidations for this tax, shall determine the overall taxable bases to which each of the rates of charge is applied according to the following conditions: procedure:

1. º Of the total amount of acquisitions and imports made during the calendar year, including the Value Added Tax supported or satisfied, the percentage relative to each group of transactions with type of different lien.

2. The resulting percentages shall be applied to the total sales volume, including the value added tax, carried out by the taxable person during each settlement period to determine the amounts that, of that global volume, correspond to each tax rate.

3. The respective global taxable bases shall be found by multiplying by one hundred one of the quantities referred to in the preceding paragraph, and by dividing the product by one hundred plus the respective levy rate.

4. The percentages provisionally applicable to each calendar year shall be determined on the basis of the operations of the preceding year.

Any taxable person who is unable to calculate that percentage, having not exercised the retail activity in the previous year, may apply a provisional percentage approved by the Administration in the form that Regulation is determined.

In the last statement-settlement of the tax for each calendar year, the taxable person shall calculate the final percentage in the light of the acquisitions and imports carried out during that period and shall carry out the consequent regularisation of the statements-liquidations relating to the whole calendar year.

3. For the purposes of the above numbers only the purchases, imports or sales of goods or products normally marketed at retail by the taxable person shall be computed.

4. The formal, accounting and registration requirements for the application of this special scheme, the form and time limits for exercising the option, the exclusion, where appropriate, of certain taxable persons or of certain taxable persons shall be laid down. economic activities and procedural rules for their implementation.

Article sixty-four. Special regime of the Equivalence Charge.

1. The special arrangements for the Equivalence Charge shall apply to retail traders who are natural persons and who develop their business in the economic sectors which are determined to be regulated.

2. The value added tax levy, payable to the retail traders to which this scheme is applicable, shall be effected by means of the equivalence charge to be paid by the retailers ' suppliers and to pass on to the retailers.

3. Taxable persons subject to this special scheme shall not be required to carry out the liquidation or payment of the tax on public finances in connection with the commercial operations carried out under that special scheme or by the transfers of the investment goods used exclusively in those activities.

Nor will they be able to deduct the shares supported by acquisitions or imports of goods of any nature or by the services that have been provided to them when such goods or services are used exclusively in the performance of the activities to which this special scheme is concerned.

For the purposes of the regularization of deductions for investment goods, the deductible proportion applicable during the period of time when the taxable person is subject to the special regime regulated in this article shall be zero.

4. In the event that the taxable person to whom this special scheme applies other business or professional activities which are subject to the value added tax, the retail trade shall in any event be regarded as a of a differentiated sector of economic activity, irrespective of the percentages of deduction applicable in other sectors.

5. In the case of initiation or termination of this special retail trade regime, the following rules shall apply:

First. In the case of initiation, the taxable persons shall carry out the liquidation and income of the tax liability resulting from the application to the value of the acquisition of the inventory, tax on the value added tax, the rates of the Tax and the Equivalence Charge in force on the immediate day before the date of initiation.

Second. In cases of termination, taxable persons may deduct the quota resulting from the application to the value of the acquisition of their inventory, the value added tax and the excluded equivalence, the rates of the Tax and Recorder that were on the date of the cessation.

Third. For the purposes of the above two rules, taxable persons shall, in the manner in which they are regulated, draw up inventories of their stocks with reference to the days immediately preceding the initiation or the cessation of the application of this special scheme.

6. Traders must prove to their suppliers or, where appropriate, to the Customs Office that they are subject to or excluded from the special scheme of retail trade in the form specified in the Tax Regulation.

7. Regulations shall be regulated in the form of a formal, accounting or registrant resulting from the application of this special scheme.

Article sixty-five. Equivalence surcharge.

1. The equivalence surcharge shall be required in the supply of movable or semi-movable goods which are subject to and not exempt from the value added tax which the employer shall make to the traders to whom this special scheme applies, as well as on imports of goods made by such traders.

The following items of goods are excepted from the preceding paragraph:

1. THOSE CARRIED OUT BY OTHER TAXABLE PERSONS UNDER THE SPECIAL ARRANGEMENTS FOR THE EQUIVALENCE OF EQUIVALENCE.

2. The number of taxable persons covered by the special arrangements for agriculture, livestock and fisheries.

3. The deliveries of goods that are not subject to retail trade by the acquirer.

4. The operations referred to in Article 29 of this Law.

2. They shall be subject to payment of the Equivalence Charge:

1. The taxable persons of the tax who make the deliveries subject to the same, upon accreditation by the recipients of their status as retail traders subject to the special arrangements, in the form that determine regulentarily.

2. º The merchants themselves submitted to this special regime that carry out the imports of goods.

3. The taxable persons referred to in the preceding paragraph 2, paragraph 1, are obliged to effect the Equivalence of equivalence on the respective acquirers in the form set out in Article 16 of this Law.

4. The taxable base of the Equivalence Charge shall be the same as for the Value Added Tax.

5. The tax rates for the Equivalence Charge shall be as follows:

a) With a general character, 3 per 100.

b) Dealing with the deliveries referred to in Article 28 of this Law, 1 per 100.

In the Budget Laws of each year, the tax rates of the Equivalence Charge may be modified.

6. The settlement and collection of the Equivalence Charge shall be in accordance with the same rules established for Value Added Tax.

TITLE VI

Liabilities of taxable persons

Article sixty-six. Obligations of taxable persons.

1. Without prejudice to the provisions of the foregoing Article, the taxable persons referred to in Article 15 of this Law shall be obliged to:

1. Submit statements regarding the commencement, modification and cessation of activities that determine their attachment to the Tax, within the time limit and with the requirements to be established regulatively.

The provisions of Title V of this Law shall not apply to taxable persons who have not correctly filed the declarations of commencement and, where applicable, modification of the activities referred to in the preceding paragraph.

2. º Exorder and deliver invoices or equivalent documents from their operations, adjusted to the provisions of this Title VI and retain duplicate of them.

3. Take accounting and records in accordance with the provisions of this Law and its implementing rules.

4. Present at the request of the Administration, in the form and with the exceptions to be determined regulatively, information regarding its economic operations with third persons.

5. To present the statements-settlements for each settlement period, in the form and time limits that are to be established.

2. Taxable persons who perform exclusively exempt transactions which are determined by regulatory means shall be exempt from the fulfilment of the obligations referred to in paragraph 1 above.

3. The obligation, in respect of certain categories of taxable persons, to use invoice machines and supplementary material for the issue of invoices or equivalent documents referred to in the Number 1, paragraph 2. of this Article.

4. The Ministry of Economy and Finance may determine the models, technical specifications and manufacturing conditions to which the machines referred to in the preceding number and the supplementary material of the models shall be adjusted.

5. The Government may provide, in the form and in accordance with the procedure to be determined, that the total or partial cost of the invoiced machines referred to is borne by the Public Finance.

Article sixty-seven. Billing.

1. Taxable persons who carry out the supply of goods or provide services subject to the tax are obliged to issue and deliver an invoice for each of their operations, including those exempt and self-consumption, in the form and with the requirements to be regulated.

2. In the case referred to in Article 15 (1) (2) of this Law, a document containing the liquidation of the tax shall be joined to the accounting officer of each operation.

This document will conform to the requirements that will be regulated and will be entered in a special register.

3. The invoices received, the accounting documents, the documents indicated in the previous number and the duplicates of the invoices issued must be kept during the period of limitation of the tax. Where the invoices received relate to investment goods, they shall be retained during their corresponding regularisation period and the following five years.

4. Alternative formulas may be established for the fulfilment of the obligations laid down in this Article in order to prevent disturbances in the development of business or professional activities.

5. The rectification of invoices in the cases of error, variation in the total amount of the consideration or when the transactions subject to the Tax are left without effect must conform to the rules that are established regulatively.

Article sixty-eight. Accounting documents.

1. Without prejudice to the provisions of the Trade Code, employers and professionals subject to the tax shall take due form the books or records which are to be established in a regulated manner.

2. Accounting shall enable the accuracy to be determined:

1. º The total amount of Value Added Tax that the taxable person has passed on to his or her clients.

2. º The total amount of the Tax supported by the taxable person.

3. All transactions carried out by taxable persons in the course of their business or professional activities shall be recorded in the corresponding records, within the time limits laid down for the settlement and payment of the tax.

4. The Ministry of Economy and Finance may amend the registration obligations set out in this Article in respect of certain business or professional sectors.

TITLE VII

Tax Management

Article sixty-nine. Settlement of the Tax.

1. Except as provided in the following numbers, taxable persons shall determine and enter the tax liability in the place, form and time limits which they shall regulate.

2. Import operations shall be settled in the form provided for in the customs legislation for tariff duties, irrespective of the liquidation which may result from any other charges.

The procedures for the settlement of the tax, the means and time limits for its payment, and the guarantees that will be obtained to ensure compliance with the corresponding obligations will be determined. tax.

Article seventy. Provisional liquidation of trade.

1. After 30 days from the notification to the taxable person of the requirement of the tax administration to carry out the declaration-liquidation which he did not carry out in the regulatory period, the procedure for the procedure may be initiated. the practice of the provisional settlement of the relevant value added tax, unless the non-compliance is remedied within the time limit or the absence of the obligation is duly justified.

2. The provisional provisional settlement shall be carried out on the basis of the data, background, signs, indices, modules or other elements available to the tax administration and which are relevant to the effect, in accordance with the procedure to be determined. regulentarily.

3. The provisional liquidations covered by this Article, once notified, shall be immediately enforceable, without prejudice to any claims that may be lawfully brought against them.

4. Without prejudice to the foregoing numbers of this Article, the Administration may at a later stage carry out the verification of the tax situation of the taxable persons, in accordance with the final settlement of the taxable persons. to the provisions of Articles 120 et seq. of the General Tax Law.

TITLE VIII

Suspension of income

Article seventy-one. Suspension of income.

1. The Government, acting on a proposal from the Minister for Economic Affairs and Finance, may authorise the suspension of the levy on the tax on the acquisition of goods or services directly related to its operations by the exporters. export, in the sectors or activities and with the requirements to be laid down in regulation.

2. The acquirers of goods or services covered by the system of suspension of entry shall be obliged to make payment of the fees not paid by their suppliers where they do not credit, in the form and time limits to be determined, the export of the goods which justify such suspension. In no case shall the fees entered under this number be deductible.

TITLE IX

Transient regime

Article seventy-two. General transitional arrangements.

1. In addition to those provided for in Title IV of this Law, taxable persons who carry out activities in the production or distribution of personal property, or work carried out for the construction of the said goods, may make the deductions which are listed below:

1. In the concept of General Tax on the Traffic of Enterprises and Provincial Recharge, in the form that is regulated, the following amounts can be deduced:

(a) taxable persons whose volume of transactions carried out during the year immediately preceding the entry into force of the value added tax would have exceeded 50 million pesetas, 6 per 100 of the price The General Tax on the Traffic of Enterprises and Provincial Recargo included, of the personal property, or of its elements, that they integrate their existences on the date of entry into force of the Tax, provided that the transmission of the same the taxable person has been subject to and is not exempt from the General Tax on the Companies.

When the transmission of the said goods would have benefited from a bonus of the General Tax on the Traffic of the Companies, the purchase price indicated in the previous paragraph will be reduced by the same proportion that represents the bonus.

In the cases of exemption or non-submission to the said Tax, no deduction will be made.

For the purposes of the preceding paragraphs of this paragraph 1. the purchase price of the goods shall be included, provided that the respective transactions have been subject to and not exempt from the General Tax on the Business traffic, the amount of consideration for the following operations:

a ') The work runs for the construction or transformation of the referenced goods or elements.

b ') Energy acquisitions and other consumables directly used in the procurement or processing thereof.

(b) taxable persons whose volume of transactions did not exceed the figure referred to in point (a) above and in the period indicated therein, the fourth part of the total amount of the tax and Recargo quotas referred to as have been supported by impact on the acquisitions of stocks carried out in the course of their business during that year prior to the currency of the tax. In the case of traders, the amount to be deducted will be reduced to one-sixth of these quotas.

However, the taxable persons referred to in the preceding paragraph and who bear accounts in accordance with the provisions of the Trade Code may alternatively choose to make the deductions provided for in point (a) of the This paragraph

.

(c) The provisions of subparagraphs (a) and (b) above shall not apply in respect of goods imported by the taxable person, even if they have undergone manufacturing, manufacturing or manufacturing processes.

Deductions for such goods will be in accordance with the terms of paragraph 5. of this number.

2. º The fees of the Luxury Tax supported by impact on the purchase or satisfied on the importation of goods or products that, taxed in the origin form by the said tribute, integrate the stocks of taxable persons at the time of the commencement of the value added tax.

The shares supported in the acquisition or satisfied by the import of the products covered by Article 15 and Article 29 (A), number one, point (a) of the first subparagraph shall be excluded from the provisions of the preceding paragraph. Text Recast of the Tax on the Luxury, approved by Royal Legislative Decree 875/1981, of 27 March, which is repealed by this Law.

3. The Beverage Tax Quotas supported by impact on the acquisition of the stocks of the companies selling the products taxed by the said tax at the time of entry into force of the Value Added Tax.

4. The quotas of the Special Taxes supported by impact or satisfied on the import corresponding to the products that, constituting the stocks of the taxable persons to the entry into force of the Tax on the Value added, they would have been taxed in accordance with the provisions of the First and Second Titles of Law 39/1979 of 30 November, and which, on the basis of the application of this Law, are not subject to imposition by any of the Special Taxes.

By way of derogation from the foregoing paragraph, the fees borne by application of the headings 9. º, paragraphs 2, 3 and 4, 21. to 26. of Article 23 of that Law No 39/1979 shall not be deductible.

5. No. The fees payable for the concepts of the Internal Gravitation Compensation Tax or, where applicable, General Tax on the Traffic of the Companies corresponding to the imports of the goods which, having been by taxable persons, they shall be in stock on the date of entry into force of the Value Added Tax, even if they have been the subject of manipulation or incorporation into other goods.

Except in the case of subsequent export of the imported goods referred to in paragraph 6. of this number 1, the deductions referred to in the preceding paragraph may in no case exceed 6 per 100 of the base taxable amount which would have prevailed for the purposes of the liquidation of the above taxes on the importation of such goods.

6. However, in the cases referred to in point (a) of paragraph 1 and in paragraph 5. of this number 1, if the goods forming part of those stocks were sent to the Canary Islands, Ceuta or Melilla, with a definitive character, or definitively exported abroad during the first year of application of this Tax, in the same state or after processing, the percentage of deduction initially applied shall be raised to the limit of 31 December of 1985, for the purposes of the Tax Burden on Export. That limit shall be reduced by eight percentage points where the products exported have been the subject of the Refreshing Beverages Tax laid down in the first transitional provision of Law 39/1979 of 30 November.

The total amount of the amounts to be collected by taxable persons under the provisions of the preceding paragraph may not exceed the amount resulting from the application of the said percentage to the total amount of the price of the acquisition or, where appropriate, the taxable amount which would have prevailed for the purposes of the liquidation of the Internal Gravelling Compensation Tax, of the personal property or of its component components which integrate its stock at 31 December of 1985, determined in accordance with the provisions of paragraphs 1 (a) and 5 (1) of this Article.

For the purposes of this paragraph 6. no, in any event, shall not be computed the physical property or its component elements whose acquisition or import by the taxable person would have been exempt or not subject to the tax. General on the Traffic of Enterprises.

2. The taxable persons of the tax shall make the deductions referred to in the preceding number 1 by dividing them by equal parts in each of the declarations-liquidations of the value added tax corresponding to the first year of application of the tax.

Deductions for goods exported during the first year of application of the Tax may be made at the time of filing the declaration-settlement for the period in which they occur.

3. For the purposes of this Article, the assessment criteria for the Company Tax or, where applicable, the Income Tax of the Physical Persons shall apply.

4. The Government, acting on a proposal from the Minister for Economic Affairs and Finance, may establish special formulas, applicable to certain sectors or companies, to compensate for the tax burden borne by taxable persons in the acquisition of goods. premiums, semi-finished products or goods existing in their heritage at the time of entry into force of the tax. The use of the said authorisation must be given to the Courts within three months.

In no case will the application of these formulas be able to assume the authorization of deductions in excess of the supported tax burdens.

Article seventy-three. Transitional arrangements for investment goods.

1. Taxable persons may deduct 6 per 100 from the consideration corresponding to the acquisitions of qualifying body goods which are regulated as investment, the transmission of which would have been subject to and not exempt from the General Tax on the Traffic of Enterprises. They may also deduct the fees paid by the Inland Gravel Compensation Tax on the importation of investment property, with the limit of 6 per 100 of the tax base that has prevailed for the liquidation of the said tax.

2. However, in the case of goods the transmission of which has been granted as a bonus from the General Tax on the Traffic of Enterprises, the amount to be deducted shall be reduced by the same proportion as that applicable in the allowance. In the case of exemption or non-application of the said tax, no deduction shall be made.

By dealing with goods imported directly by taxable persons with the application of any tax benefit in respect of any such tax, the amount to be deducted shall be that resulting from the application, as calculated on the basis of the provisions of paragraph 1 of this Article, the coefficient resulting from dividing the sum of the quotas payable by both taxes, by the sum of those which have been required not to apply those benefits.

3. This deduction shall relate to goods acquired or imported during the year preceding the entry into force of the Tax and duly inventoried on 31 December of that year.

4. The right to the deduction regulated in the preceding numbers shall be applied in the last declaration-settlement for the year of entry into force of the tax and the following three years for the fourth quarter.

Article seventy-four. Requirements for deductions under the transitional regime.

1. The taxable persons of the tax established within the Spanish peninsular territory and the Balearic Islands may make use of the deductions under the transitional arrangements.

2. Except as provided for in Article 72 (1) (1) (b), they shall determine the right to deduct body property which, on the date of entry into force of this Law, is integrated into the business or professional heritage of the subject a taxable person who exercises the deduction and is materially located in the Spanish mainland or the Balearic Islands.

For the purposes referred to in the preceding paragraph, goods shall be treated as materially situated in the Spanish peninsular territory or the Balearic Islands which, on the date indicated, are in temporary export situation and the means of transport registered in the territory of application of the tax.

3. For the purposes of the General Tax deductions on the Traffic of Enterprises and Provincial Recargo regulated in this Title IX, the goods shall be deemed to be acquired and integrated into the assets of the taxable person or, if applicable, transmitted and excluded from such assets, on the date on which the accrual of the tax has occurred and on the part of the tax.

4. Without prejudice to the provisions of this Title, the exercise of the right to deduct shall be conditional upon compliance with the rules laid down in Title IV of this Law to the extent that they are applicable.

The pro rata applicable to these effects shall in any case be that corresponding to the first year of validity of the Tax, without resulting in the adjustment of deductions for investment goods.

The pro rata provisionally applicable during 1986 will be the one that would result if the Value Added Tax had been in force for the year 1985.

Dealing with acquisitions made within the Spanish territory will be a prerequisite for the exercise of the right to deduct from the invoice issued by the suppliers in which it appears Tax shall be passed on to justify such deduction.

5. Taxable persons who have not been able to make the deductions for the transitional arrangements under the procedure provided for in this Title, having exceeded the amount of the deductions, the amount of the contributions accrued, may make use of the right to return in accordance with the provisions of Articles 48 and 49 of this Law.

6. The accounting requirements, formal requirements and the procedure for the exercise of deductions under the transitional arrangements shall be regulated.

Article seventy-five. Guarantees and exclusions from the transitional regime.

1. In order to be able to carry out the deductions referred to in this Title, the justification shall be required that the tax corresponding to the goods acquired or imported was entered into the Treasury or, where appropriate, its impact on the periods indicated.

2. They may not make use of the right to deduct regulated in this Title who do not comply with the rules on discipline or price reduction which, where appropriate, are given on the occasion of the entry into force of the tax.

3. The taxable persons to whom the special scheme of the Equivalence Procedure laid down in Articles 64 and 65 of this Law applies shall be excluded from the right to deductions under the transitional arrangements.

TITLE X

Violations and penalties

Article seventy-six. Violations.

1. Without prejudice to the provisions of this Title, the tax infringements in this Tax shall be qualified and punished in accordance with the provisions of the General Tax Law and other rules of general application.

2. They constitute simple violations:

1. The lack of presentation or, where appropriate, the non-term presentation of the statements regarding the commencement, modification or cessation of the activities that determine the subjection to this Tax.

2. º The inaccuracy of the data recorded in the same statements.

3. The failure to comply with the obligations laid down in Article 16 of this Law.

4. º The impact imposed on an invoice or equivalent document, by persons who are not taxable persons, of tax quotas that have not been the subject of income within the corresponding period.

The provisions of the preceding paragraph shall apply without prejudice to the provisions of Article 79 (c) of the General Tax Law.

5. The acquisition of goods by taxable persons under the special arrangements for the Equivalence of equivalence without the corresponding invoices or import clearance being expressly passed on to the tax on the Value Added and the Equivalence Charge, unless the acquirer has given this account to the Administration in a manner that is determined to be regulated.

Article seventy-seven. Penalties.

1. The simple infringements laid down in Article 2 (2) shall be punished in accordance with the rules of general application.

However, in relation to the offences defined in Article 76 of this Law, the following specific sanctions shall apply:

1. The false declaration of absence will be sanctioned with a fine of 50,000 to 150,000 pesetas.

2. º Those set out in paragraph 3. º, with a fine of 5,000 pesetas for each invoice or similar document in which the infringement occurs.

3. º The ones set out in paragraph 4. º, with fines of tripling of the quotas unduly passed on, with a minimum of 50,000 pesetas for each invoice or analogous document in which the infringement occurs.

4. º The ones set out in paragraph 5. º, with a fine of 500 per 100 of the amount of the Equivalence Charge that would have had to be passed on, with a minimum amount of 1,000 to 100,000 pesetas for each of the acquisitions or imports carried out without the corresponding impact of the Equivalence Charge.

2. The penalty of loss of the right to benefit from tax benefits shall not apply in relation to the exemptions set out in this Law and other regulatory rules on Value Added Tax.

ADDITIONAL DISPOSITION

The recast text of the Tax on Heritage Transmissions and Documented Legal Acts, approved by Royal Legislative Decree 3050/1980, of 30 December, will be amended in the following terms:

1. The first subparagraph of Article 7 (5) shall be worded as follows:

"They will not be subject to the concept of" onerous transfers " of the Tax on Heritage Transmissions and Legal Acts Documented the operations listed above when they are carried out by businessmen or professionals in the exercise of their business or professional activity and, in any event, when they constitute supplies of goods or services subject to the Value Added Tax. However, supplies or leases of immovable property shall be subject to such a tax concept when they are exempted from the value added tax. "

2. Article 48 (1) (b), number 19, shall be worded as follows:

" 19. Cash deposits and loans, whatever the way they are implemented, including those represented by promissory notes, bonds, bonds and similar securities. The exemption shall also extend to the subsequent transmission of the securities documenting the deposit or loan. '

3. In Article 48.I. B), a new number 20 is added to the following terms:

" 20. The transfers of buildings to the leasing companies defined in Royal Decree-Law 15/1977 of 25 February to be the subject of a lease with an option to purchase, when such transactions are exempt from the tax on the Value Added. "

TRANSIENT PROVISIONS

First.

They are not subject to Value Added Tax:

1. The operations subject to the General Tax on Trafficking in Companies whose accrual would have occurred prior to the entry into force of this Law.

2. The sales of official protective housing and documented in public writing before 1 January 1986 and those whose respective contracts had been submitted for the compulsory administrative visa with prior to that date before the competent authority in the field of housing.

The non-subjection set forth in the preceding paragraph shall not preclude the seller's right to deduct from the Value Added Tax which, if any, is passed on to him as a result of related transactions with the construction of the aforementioned dwellings.

Second.

At the entry into force of the Value Added Tax, and provided that the goods to which they relate have been made available to their acquirers, the whole of the General Tax quotas shall be considered payable on the Traffic of Companies that tax the following transactions:

1. The lease-sale contracts.

2. º Financial leasing contracts and other leases with an option to purchase when the lessee would have committed to exercising that option prior to the entry into force of this Act.

3. Sales of homes with deferred payment of the price.

However, the taxable persons will be able to make the income of the tax quotas, in the form that is determined to be regulated, at the end of the calendar quarter in which the payments after the entry into force of the this Act.

Third.

During the first three years of validity of the tax, the special arrangements for agriculture, livestock and fisheries will not be eligible for the taxable persons who have benefited from the deductions of the regulated transitional in Title IX of this Law.

Fourth.

The provisions of Article 64, number 5, first rule, of this Law shall not apply to taxable persons to whom the special regime of the Equivalence Charge applies at the date of entry into force of this Law.

Fifth.

All acts or businesses of amounts relating to the first transmission or award of official protection housing shall have a 75 per 100 reduction in the rights or rates of the fees of Notaries ' fees and Registrars when they have been made since the date of publication of this Law in the "Official State Gazette" until December 31, 1985 inclusive.

Sixth.

Deductions or, where applicable, returns arising from the application of the provisions of Title IX of this Law, shall be considered as income or income for the purposes of the Income Tax of the Physical Persons or of the Company Tax.

The temporary imputation of such income or income shall be made for the period in which they are made effective.

FINAL PROVISIONS

First.

Except as provided for in its fifth transitional provision, this Law shall enter into force on 1 January 1986.

However, from the date of publication of this Law in the "Official State Gazette", the Government may require employers or professionals to comply with the obligations laid down in Article 111 of the Law. General Tax, and in Article 66, No. 1, paragraph 2. of this Law.

Second.

On 1 January 1986 the following provisions will be repealed, without prejudice to the right of the Public Finance to demand the tax debts accrued prior to that date:

(a) Decree 3314/1966 of 29 December, approving the recast of the General Tax on the Traffic of Enterprises and other provisions governing the tax and its provincial charge.

b) Royal Decree 875/1981 of 27 March 1981 approving the recast of the tax on luxury and its supplementary provisions.

(c) The rules of the Special Tax on Refreshing Beverages, contained in Law 39/1979 of 30 November, of Excise and other supplementary provisions relating to the same Tax.

(d) Decree No 2169/1964 of 9 July 1964 on the taxation of the compensation for the internal taxation of the internal market and its supplementary provisions and Title II of Royal Decree 511/1977 of 18 February 1977 on the Text Recast of the Tax Members of the Income of Customs and its supplementary provisions.

e) Decree 1255/1970 of 16 April on the regulation of the tax burden on exports and their supplementary provisions.

(f) The rules governing the perceptions of the social security system as set out in Decree 2123/1971 of 23 July, approving the Regulatory Text of the Special Agrarian System of Social Security and in the Decree 345/1971 of 25 February, as well as its concordant and complementary provisions as regards the regime of such perceptions.

g) Special provision novena of the Law of December 29, 1910, of the General Budget of the State for the year 1911, for which the Tax of 5 per 100 is created on the entrances and localities of all public spectacle, thus as the Decree of the Presidency of the Government of 23 July 1953, approving the Regulation of the said tribute and other supplementary provisions.

(h) Articles 3 and 4. of Law 1/1982 of 24 February and other provisions regulating the parafiscal action on the exhibition of films in the "X" rooms.

(i) Article 99 (a), (b) and (c) of Royal Decree 3250/1976 of 30 December 1976 establishing the municipal tax on certain expenses and supplementary provisions relating thereto.

(j) Decree 1430/1959 of 18 August, and other provisions regulating the Parafiscal, Quota, Arbitration and Payment of Services in the concept of commission and expenditure of the National Institute of the Spanish Book.

(k) Decree 491/1960 of 17 March, for which the Parafiscal Exaction on Agricultural Mechanization is hereby validated, as well as the Ministerial Order of 6 August 1963, for the development of Decree 491/1960, referred to above, and other regulatory provisions of this parafiscal action.

(l) Decree 492/1960 of 17 March, for which the rates of the National Service for the Crop and Fermentation of Tobacco are validated, and other regulatory provisions of the said Rate.

(m) Decree 500/1960 of 17 March, for which the 'Parafiscal charges and charges on seeds' are validated, and other provisions governing such fees.

n) Decree 662/1960, of 31 March, and other provisions regulating the parafiscal Exactions of the Patronato "Juan de la Cierva" of technical research.

n) Decree 1331/1959 of 27 July establishing certain surcharges on telephone services and other regulatory provisions thereof.

or) Articles 43 to 47, both inclusive, of Decree 511/1967, of 2 March, and other provisions of the Tax on the Use of the Telephone.

p) The fourth final provision of Law 33/1984 of 2 August on the Management of Private Insurance, which regulates the surcharge on premiums or fees collected by Insurance Entities, and other regulatory provisions of such surcharge.

(q) Article 1 (8) of the Decree of 8 December 1934 establishing the participation of the State in the concept of 'Broadcasting and Television Advertising Rights'; the Decree of 23 December 1957, regulating such participation; Article 7 of Royal Decree-Law No 26/1977 of 24 March 1977 and other provisions governing the participation of the Royal Decree-Law No 26/1977.

(r) Article 1 (a) and (b) of Decree 499/1960 of 17 March, for which certain 'Exactions of the Institute for the Promotion of the Production of Textile fibres' and other regulatory provisions are validated.

s) Decree 306/1960, of 25 February, for which the "Canon on generic propaganda of Spanish olive oil" and other regulatory provisions of the same are hereby validated.

(t) Article 7 (2) (a), (b) and (c) of Law 81/1961 of 23 December, regulating the Southern Plan of Valencia, which provides for the establishment of certain timbres and arbitrations, as well as other provisions regulatory of the same.

u) Act 7/1981 of 25 March; Royal Decree 854/1984 of 26 March 1984 and other provisions of the Canon on the production of electrical energy.

v) Decree 4292/1964 of 17 December 1964 and other provisions of the "Rate for Bending Permits, Subtitled and Exhibit in Original Version of Foreign Films".

x) Decree 4229/1964, of 17 December, regulator of the "Canon on advertising contracts".

and) Article 7 of the Law on the Coordination of Land Mechanical Transports of 27 December 1947, Articles 34 and 35 of its Rules of Procedure, adopted by Decree of 16 December 1949, and the other provisions Canon of the coincidence of the coincidence of road transport services.

Third.

The tax benefits established prior to the validity of this Law will not produce effects in relation to Value Added Tax.

ANNEX

1. For the purposes of this Law, it shall be deemed to be:

First. Vessels: Those falling within heading 89.01 and subheading 89.03 A of the Customs Tariff.

Second. Aircraft: Aerodines operating with the aid of a propelling machine falling within heading 88,02 B of the Customs Tariff.

Third. International maritime navigation: To be carried out by ships through sea waters in the following cases:

(a) When starting from the Spanish mainland or Balearic Islands or a foreign country, conclude in another country or vice versa.

(b) When vessels are affected by offshore navigation and are engaged in the exercise of an industrial, commercial or fishing activity, other than transport, provided that the duration of the non-stop navigation exceeds Forty-eight hours.