Article 37 provides an exception to the general valuation rules outlined in Articles 34 and 35 of the Decree-Law, specifically for deemed supplies. This provision applies when a Taxable Person initially purchases goods or services for the purpose of making Taxable Supplies but ultimately does not use them for that intended purpose. In such circumstances, the value of the deemed supply is determined to be the total cost that the Taxable Person incurred to create this deemed supply of goods or services, rather than its market value. This ensures the valuation is based on the actual expenditure.
Title 5 - Rules Pertaining to Supplies
Chapter 4 - Value of Supply
Article 37 Value of Deemed Supply
As an exception to Articles 34 and 35 of this Decree-Law, the value of the supply in the case of a Deemed Supply when the Taxable Person purchases Goods or Services to make Taxable Supplies but does not use those Goods or Services for that purpose, will be equal to the total cost incurred by the Taxable Person to make this Deemed Supply of Goods or Services.
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