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V0278-21 17 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sales to UK customers subject to VAT unless effective transport outside the Community is proven

A company requested clarification on whether sales of goods to a British client could be VAT exempt. The DGT ruled that, following Brexit, the United Kingdom is a third country and exemption depends on proving the effective transport of goods outside the European Union.

The question raised

Value Added Tax treatment of sales made by the applicant to her British client and whether the same may be exempt from tax by virtue of article 25 of the Value Added Tax Law.

The DGT's ruling

For deliveries prior to 31/12/2020, the exemption under art. 25 of Law 37/1992 applies if transport to the Member State is fulfilled. For subsequent deliveries, the export exemption under art. 21 of Law 37/1992 applies. In both cases, it is essential to prove effective transport outside the Community through means of proof admitted in law, such as customs documentation. If the seller does not possess proof of transport linked to the delivery, the transaction shall be subject to VAT.

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