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V1148-18 7 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

Classification of toll manufacturing and criteria for the existence of a permanent establishment

An Irish company has requested clarification on whether its toll manufacturing contract with a Spanish entity constitutes a permanent establishment and whether the transaction is classified as a supply of goods or a provision of services. The DGT has determined that, as the client provides the majority of the raw materials, the operation is classified as a provision of services.

The question raised

Question raised: It is questioned whether the Irish entity should be considered to have a permanent establishment in the territory of tax application; whether the toll manufacturing operations carried out by the established entity should be classified as the provision of services or the supply of goods, and the place of performance of said operations.

The DGT's ruling

La fabricación en maquila es una prestación de servicios cuando el cliente aporta todos los materiales o los aportados por el empresario son insignificantes. En este caso, al aportar la consultante la parte mayoritaria de la materia prima, la operación es una prestación de servicios. Dichos servicios solo estarán sujetos al impuesto si la entidad irlandesa dispone de un establecimiento permanente en España que sea el destinatario efectivo del servicio.

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