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V1301-19 6 June 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

No permanent establishment exists if use of logistics warehouses or commercial support staff lacks contracting capacity

A German company inquires whether it has a permanent establishment in Spain due to contracting logistics services and employing commercial support staff. The DGT rules that it is not considered established if it does not hold title to fixed facilities and if the support staff lacks the authority to negotiate or conclude contracts on its behalf.

The question raised

Whether it can be considered that the taxpayer is established in the territory of application of the tax.

The DGT's ruling

For a permanent establishment to exist, a structure with human and technical resources with a sufficient degree of permanence is required. The use of third-party logistics services or warehouses does not imply a permanent establishment. Likewise, having commercial support personnel does not constitute a permanent establishment provided that such person does not have the capacity to negotiate the essential elements of contracts or conclude them, even if they do not materially sign the document.

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