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A Spanish company has enquired whether the purchase of machinery from a Portuguese supplier and its subsequent sale to a distributor in Portugal, where the goods do not leave said country, is subject to Spanish VAT. The DGT has ruled that, as there is no transport to Spanish territory, the transactions are not subject to tax in Spain.
This ruling clarifies that transactions involving goods that remain entirely within another EU Member State do not trigger Spanish VAT liability, even if the parties involved are Spanish entities.
The tax team reviews your specific situation.
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