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V0636-22 24 March 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

Exports prevent use of special refund scheme for non-established persons

An Israeli company importing goods for sale in Spain has enquired whether starting to export to Morocco would affect its status as a non-established person or its VAT refund eligibility. The DGT has ruled that while the company remains non-established, the act of making exports means it can no longer utilise the special refund procedure under Article 119 bis.

The question raised

Whether the commencement of the described exports affects the non-established status of the taxpayer for Value Added Tax purposes or the procedure for requesting the refund of the tax paid in the territory to which the Tax applies.

The DGT's ruling

The use of logistics warehouses does not imply the existence of a permanent establishment. However, when carrying out exports, the company becomes a taxable person for such operations, which fails to meet the requirements of Article 119 bis of Law 37/1992. Therefore, it must request the refund of tax paid through the general procedure set forth in Articles 115 or 116 of the Law.

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