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V1105-18 27 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · perfeccionamiento pasivo

VAT exemption does not apply to goods transport under inward processing

A transport company enquired whether its services for goods under inward processing outside the Community were exempt from VAT. The DGT ruled that such an outflow does not qualify as an export and, therefore, the exemption does not apply.

The question raised

Whether the transport of goods for temporary export under the inward processing regime is exempt from Value Added Tax as a service related to exports or operations assimilated to exports.

The DGT's ruling

Transport services are not exempt if they are not linked to a delivery of goods that constitutes an export or a shipment outside the Community. The outward movement of goods under the inward processing regime cannot be classified as an export operation according to the Union Customs Code. Consequently, the exemptions provided in Article 21 of the VAT Law cannot be applied to these cases.

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