Back to index
V0968-18 16 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Sale of moulds subject to VAT, while component manufacturing depends on material value

A Spanish company designs processes and manufactures moulds and components for a client in the USA. The Tax Agency has ruled that the sale of the mould is subject to VAT, and that the manufacturing of components may constitute either a supply of goods or a provision of services, depending on the value of the materials supplied.

The question raised

Question raised: The question concerns the Value Added Tax treatment of the operation consisting of the design of the production process and the manufacture of tooling parts, as well as the manufacture of the integrated parts by the applicant.

The DGT's ruling

The delivery of the mold is a supply of goods subject to VAT, and the tax must be charged to the US client. The manufacture of the parts is classified as a supply of goods if the manufacturer's materials are significant, or as a provision of services if the client's materials are predominant. If it is a provision of services, it is not subject to Spanish VAT as the recipient is a taxable person not established in Spain. If it is a supply of goods, it could be exempt if the requirements for dispatch to another Member State are met.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact