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V0430-20 24 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · establecimiento permanente

IVA obligation maintained if permanent establishment remains in Spain after moving residence

A tax advisor relocating to Switzerland enquires about VAT obligations and fiscal residency in Spain. The DGT states that VAT depends on whether a permanent establishment remains in Spain or the recipient's location, and fiscal residency will be determined by the LIRPF criteria and the Spain-Switzerland double taxation treaty.

The question raised

1.- Whether, once residence has been transferred to a third territory (Switzerland), they must continue to file their Value Added Tax returns.

The DGT's ruling

Regarding VAT, the taxpayer will have obligations if they maintain a permanent establishment in Spain with an adequate structure and human/technical resources. If the recipient is a professional in Spain, the tax applies regardless of the provider's location. Regarding tax residence, the criteria of permanence (>183 days) or the base of activities under the Personal Income Tax Law (LIRPF) shall apply, resolving conflicts through the Spanish-Swiss Convention (permanent home, center of vital interests, or habitual residence).

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