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V0703-14 13 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · depósito distinto del aduanero

VAT treatment depends on machinery destination and the type of warehouse regime applied

A German company has requested guidance on how to account for VAT regarding the rental and sale of machinery in Spain and which tax forms to file. The DGT clarifies that treatment varies depending on whether a non-customs warehouse is used or if the goods are sent directly to the customer.

The question raised

Taxation of operations in Value Added Tax and declaration of the receipt of the machinery in the territory of application of the Tax in the tax return forms.

The DGT's ruling

If the machinery is sent to a warehouse other than the customs warehouse, the consultant is the taxable person for an operation assimilated to an import upon leaving the regime. In direct shipments to the lessee, the lease is a service provision subject to VAT with the reverse charge mechanism. The subsequent sale also involves the reverse charge mechanism in favor of the acquirer. The entity must apply for a VAT number and submit Form 349 to report intra-Community operations.

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