In practice it is widely used by gestorías, lawyers, architects or agencies that pay official fees or registry charges on behalf of their clients. On your invoice it appears on a separate line, outside the taxable base and without VAT, and you must keep the third party invoice or payment receipt in the client's name as support.
Do not confuse it with a re-invoiced expense: if the cost is billed in your name and you then charge it to the client, it is ordinary income of your activity and carries VAT. For a true suplido, the third party invoice must be issued in the client's name and the amount passed on must be exact, with no markup.
A typical example: you pay for travel or a hotel for a job and add it to your invoice as a suplido. It is not one, because those costs are in your name and are part of your service, so they carry VAT. Nor should you deduct it as your own expense.
It is linked to the taxable base, to deductible expenses and to the invoice. It is booked outside income and expenses, and it does not go into your quarterly VAT return. kontora lets you add suplidos on a separate line on your Verifactu invoices without touching your income.
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