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V0446-24 19 March 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · dropshipping

Dropshipping sales may be exempt from VAT if transport starts outside Spain

A professional conducting dropshipping from China or Pakistan asks about VAT treatment. The DGT states that, without opting for special regimes, deliveries may be exempt from VAT if transport does not start in Spain.

The question raised

1st: The taxation of the operations carried out by the taxpayer for the purposes of Value Added Tax is questioned.

The DGT's ruling

In the dropshipping model, if the shipment goes directly from the supplier to the customer and the latter assumes the position of importer, the delivery by the taxpayer is not subject to VAT as the transport does not originate in Spain. However, if the taxpayer opts for the special import scheme (IOSS) for shipments of up to 150 euros, the sales will be subject to the tax. Regarding Personal Income Tax (IRPF), there is no reduced rate for new self-employed individuals, although a 20% reduction for the commencement of activity may be applied under certain requirements.

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