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V0373-19 20 February 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Storage services for non-established companies are not subject to VAT if there is no exclusive use of space

A company sought clarification on whether its self-storage services for EU clients were subject to VAT, specifically regarding the rental of individual modules or the storage of exhibition stands. The DGT ruled that if the client does not have a permanent establishment in Spain and the service does not involve the transfer of exclusive physical space, the transaction is not subject to VAT.

The question raised

The applicant questions the liability for Value Added Tax regarding storage and warehousing services to be provided to a company established in another European Union Member State when the services are provided through the rental of an individual module, when the goods are not stored in a space reserved exclusively for the service recipient, and when the object of the storage service is dismantled stand material to be assembled at international fairs and events.

The DGT's ruling

Storage services provided to entrepreneurs not established in Spain are not subject to VAT if the recipient does not have a permanent establishment in the territory. If the service involves the assignment of a specific physical space for exclusive use, it is classified as a service related to real estate and shall be subject to the tax. Conversely, if a specific part of the real estate is not assigned for the exclusive use of the client, it is not considered a service related to real estate.

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