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V0487-20 27 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Reverse charge mechanism does not apply to smartwatches unless classified as mobile phones

A query was raised regarding whether the import and resale of a smartwatch with a SIM card slot requires the importer to register as a reseller. The DGT ruled that the reverse charge mechanism only applies to specific products based on their tariff classification.

The question raised

Obligation of the applicant to register as a reseller for the purposes of the provisions of Article 84.One.2º.g) of Law 37/1992.

The DGT's ruling

The reverse charge mechanism does not apply to smartwatches with a SIM slot if they are not classified as mobile phones in the combined tariff nomenclature. The status of reseller is only acquired when there is regularity in the resale of the specific goods included in Article 84.One.2º.g) of the VAT Law.

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