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V0997-18 18 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

The customer is the VAT taxable person when a German company stores goods in Spain without having a permanent establishment

A German company sends goods to Spain to be stored until their customers decide to purchase them. The DGT has ruled that, as the company does not have a permanent establishment in Spain, it is not established there, and the Spanish customer must apply the reverse charge mechanism.

The question raised

Taxation of the operations carried out by the applicant.

The DGT's ruling

The mere use of warehouses managed by customers does not constitute a permanent establishment if the company only receives a storage service. As the German company is not established in Spain, the taxable person for the supply of goods shall be the Spanish customer through the reverse charge mechanism. Shipments from Germany to Spain are considered assimilated intra-Community acquisitions, which shall be exempt if the company meets the requirements for tax refund according to Article 119.

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