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V0640-21 18 March 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

Sales of goods from Hungary to Spain are taxed via reverse charge if there is no permanent establishment

A Turkish company inquires about the taxation of goods transported from Hungary to Spain and stored by a third party. The DGT determines that operations assimilated to intra-Community acquisitions and imports are subject to VAT, and that subsequent sales are settled via the reverse charge mechanism.

The question raised

Question posed: Taxation in Value Added Tax of the described operations and, where applicable, the procedure through which the right to deduct the tax amounts incurred or paid may be exercised.

The DGT's ruling

The transport of goods from Hungary constitutes an operation assimilated to an intra-Community acquisition, of which the inquirer is the taxable person. If the company does not have a permanent establishment in Spain, subsequent sales of those goods are considered subject to tax via the reverse charge mechanism in the hands of the acquirer. In the case of direct importation from a third country, the inquirer is the taxable person and the settlement corresponds to the customs authorities. The right to deduction is subject to the requirements and limits of Title VIII of Law 37/1992.

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