Hi Martin,

As a Gazette reader, I would appreciate your opinion on an issue before I start spinning my wheels with Telefónica.

I just received my invoice dated July 1st. The periodo del consumo is from 17 May.- 15 Jun.
They billed the IVA at the new 18% rate that is effective as of July 1st. Can a company in Spain charge the higher IVA when the charges were incurred before the rate took effect?

Regards,
Clay Pamphilon

Hi, C.P.

According to an article published in the Ideal newspaper on the 12th of this month, it states that the new 18% IVA is applicable according to the date of the bill; i.e., even though the services concerned dates back to the 16% time (up to 30th June 2010), it is the date of the bill that counts. This is the case with all ‘amenity supplies’, such as water bills, electricity bills and telecommunications in general).

As far as services go, such as those provided by a plumber, for example, the IVA charged is related to when the service was concluded, even though the bill is dated after the 1st of July.

If, say, you bought an item from a shop prior to July and then returned it so that it could be replaced, if the shop has to make out a new bill, the shop can insist on using the 18% rate and charging you the difference.

Finally, goods purchased through financing, as long as the item was received before the 1st of July, the old 16% rate applies, even though instalment payments continue after that date.

Hope that this answers your question.

Cheers
Martin, the Ed.