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V0568-16 10 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · localización de la prestación

VAT location for vessel repairs depends on the recipient's status

A company repairing recreational vessels in Spanish ports has requested clarification on the VAT and invoicing rules applicable to EU clients. The Directorate-General for Taxes (DGT) clarifies that the location of the service depends on the recipient's status and whether the services are provided for economic activity or private use.

The question raised

Liability for Value Added Tax. Invoicing

The DGT's ruling

If the recipient is a businessperson or a professional, the service is located where their registered office, permanent establishment, or domicile is situated, provided that the service is for their activity. If the recipient is not a businessperson or a professional, the service is located where the work is materially performed. Pleasure boats are not exempt from VAT. Invoices must comply with general requirements, with simplified invoices being permitted in certain cases involving amounts or retail sales.

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