Skip to content
Back to index
V0003-22 3 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Delivery by a non-established party to another non-established party applies passive investment

A non-established entity in Spain with VAT registration consults on the treatment of a chain of goods sales involving a single intracommunity transport. The DGT determines that, as the deliveries are not intracommunity, the sale from the consultant to the German entity is subject to VAT and the passive investment rule applies.

The question raised

Whether it is appropriate to apply the reverse charge mechanism in Value Added Tax regarding the supply of goods from the Spanish company to the taxpayer and the subsequent sale from the taxpayer to the German company

The DGT's ruling

In the supply of goods carried out by an entity not established in Spain to another non-established entity, when the exceptions of Article 84.One.2.a) do not apply, the reverse charge mechanism is applied. In this case, the taxable person shall be the entrepreneur receiving the transaction, who must declare both the tax due and the deductible amount. The supply from the taxpayer to the German entity is considered an intra-territorial supply subject to tax as the transport is not linked to said supply.

Free assessment and quote