Tax advisor: Should the registration service for vehicles sold be considered as accessory in the IGIC tax base for vehicle purchase and sale activity?

The ruling under review determined that vehicle deliveries and agency services are independent and autonomous activities in the context of the Canary Islands General Indirect Tax (IGIC). This conclusion was based on a legal provision similar to article 78 of the Value Added Tax (VAT) Law and on case law of the Court of Justice of the European Union (CJEU) related to the distinction between sole and incidental supplies in the scope of the Community VAT.

The issue of interest to the Supreme Court raises the question of whether the registration service of vehicles sold should be considered as an ancillary service or as an independent service when calculating the IGIC taxable base, particularly for those taxpayers whose main activity is the sale of vehicles. Since this issue has important implications and lacks clarity, it is considered necessary for the Supreme Court to issue a ruling clarifying whether, when calculating the IGIC taxable base in the context of the sale of vehicles, the service of registration of vehicles sold should be considered as an ancillary or independent supply.

B Law & Tax International Tax & Legal Advisors.

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