We will answer any questions you may have regarding VAT on bank fees.
In this article we explain how to account for VAT on bank fees.
Bank fees are an issue that all self-employed workers and companies have to deal with on a daily basis. Even if you have negotiated good conditions with the banks and do not request bank financing, there are always some fees that are impossible to avoid.
Bank fees are denmark email list always due to a service provided by the financial institution.
Start of marked textSHARE! Do you have questions about VAT on bank fees? In this article we explain how to account for it correctly.End of marked text
Cashing checks, managing receipt collection, issuing transfers, maintenance fees or fees for using the POS are some of the fees that companies and self-employed workers may encounter.
But the strange thing about bank commissions is that in some cases they include VAT and in others they do not.
Which bank fees are subject to VAT and which are not?
Since bank commissions correspond to a service provided by the financial institution, they are subject to VAT . However, there is an extensive list of financial transactions that are exempt. These exemptions are included in article 20.1.18 of the VAT Law of Law 37/1992, of December 28, on Value Added Tax.
Financial operations exempt from VAT
Among the most common VAT-exempt financial transactions are the following:
Cash deposits in their various forms. These forms include deposits in current accounts and savings accounts. Also included are operations related to deposits, such as collection or payment services provided by the depositor on behalf of the depositor. An example of these services is collection through POS . In addition, credit operations in check and cheque accounts are also considered.
The transmission of cash deposits, including through certificates of deposit or securities that perform a similar function.
The granting of credits and loans in money, whatever the form in which it is implemented, including through financial instruments or securities of another nature.
Other operations, including management, relating to loans or credits carried out by those who granted them in whole or in part.
The transmission of loans or credits.
The provision of bonds, guarantees, sureties and other real or personal guarantees, as well as the issuance, notice, confirmation and other operations related to documentary credits.
The transmission of guarantees.
Operations related to transfers, money orders, checks, drafts, promissory notes, bills of exchange, payment or credit cards and other payment orders . The following operations are included in this exemption:
Interbank clearing of checks and cheques .
The protest or substitute declaration and the management of the protest.
The transmission of effects and payment orders, including the transmission of discounted effects.
Purchase, sale or exchange operations and similar services involving foreign currency, banknotes and coins that are legal means of payment , with the exception of collector coins and banknotes and gold, silver and platinum pieces.
Services and operations, except for deposit and management, relating to shares, interests in companies, and bonds, with some exceptions.
The transfer of securities and services related to them, such as mediation, including for their issue or redemption, with the same exceptions.
