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V1068-22 12 May 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Supply by a British company to a taxpayer is subject to VAT and reverse charge applies

A Spanish company purchases raw materials from a British company that is not established in Spain but acts as an intermediary in a sales chain where goods are shipped directly from another EU Member State. The DGT determines that the transaction is an intra-community supply subject to VAT and that the requesting company must apply the reverse charge mechanism.

The question raised

Whether the delivery made by the British company to the applicant is subject to Value Added Tax and, where applicable, who is the taxable person for said delivery.

The DGT's ruling

If the intermediary communicates to its supplier a VAT number from the Member State from which the goods are transported, the delivery is considered intra-Community; otherwise, the delivery is linked to the intermediary and is a domestic transaction. As there is no information available regarding a VAT number from the State of origin and it is established that the British company has a VAT number in Spain, it is considered a domestic delivery subject to VAT. In this case, as the supplier is not established in Spain, the reverse charge mechanism applies, with the applicant being the taxable person.

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