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V1331-19 7 June 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

VAT applicability for boat maintenance services depends on client status and location

A boat maintenance professional seeks clarification on whether her services are subject to VAT when the client is a British Virgin Islands entity with a home port in Spain. The DGT rules that VAT applicability depends on whether the client acts as a business or professional and whether they have their registered office or a permanent establishment in Spain.

The question raised

Place of supply of repair services for Value Added Tax purposes.

The DGT's ruling

If the client is an entrepreneur or professional with a registered office or permanent establishment in Spain, the service is subject to tax pursuant to Article 69.One.1º of Law 37/1992. If the client is not an entrepreneur or professional, the service shall be subject to tax if the provider has its registered office or permanent establishment in Spain, in accordance with Article 69.One.2º of the same law. For a permanent establishment to exist, an adequate structure of human and technical resources with a sufficient degree of permanence is required.

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