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V0277-21 17 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Supplies of products for container conditioning are not VAT exempt if installation occurs in Spain and transport is not linked to the supply

A company inquired whether the sale of a product designed to improve container preservation could be VAT exempt if the containers are intended for export. The DGT ruled that it is not, as the supply of the product is linked to the containers rather than the transport of the exported goods.

The question raised

Whether Article 21 of Law 37/1992 can be applied to the supply of the product marketed by the applicant insofar as it is intended to condition the containers that will subsequently be used for the transport of goods subject to export outside the territory of the Community and, where applicable, the method to prove the effective exit of the product to a third country or territory.

The DGT's ruling

Sales of the product are considered supplies of goods subject to VAT when the installation is carried out within the national territory. For the export exemption to apply, the transport outside the Community must be linked to the supply of the goods in question. In this case, the supply of the product for conditioning containers is not linked to the subsequent export of the goods contained therein, but to the containers themselves.

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