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V0753-19 3 April 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención diplomática

VAT treatment on the return of a vehicle acquired with diplomatic exemption due to change of residence

A Spanish diplomat who acquired a vehicle in Spain under diplomatic exemption and moved it to France returns to Spain without having registered it abroad. The DGT rules that no VAT is due on the return, but the Special Transport Tax must be paid.

The question raised

Exemption from Value Added Tax for a returning vehicle that has not been registered abroad for 12 months.

The DGT's ruling

Regarding VAT, the return of the vehicle does not constitute a taxable transaction nor an intra-Community acquisition, as the asset was acquired in Spain and returns without a transfer of the power of disposal. With respect to the Special Tax on Means of Transport, definitive registration in Spain shall be subject to the tax because the requirement of having used the vehicle in the former residence for at least six months prior to the move is not met.

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