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V1361-16 1 April 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

NIF required for non-resident entity and its permanent establishment if activities are distinct

A Belgian company asks whether it needs two VAT IDs for its operations in Spain, including a logistics warehouse and a IT services branch. The DGT clarifies that two VAT IDs are required if the activities are different and managed separately, and specifies the applicable VAT return regime.

The question raised

Need for one or more tax identification numbers for the applicant's operations, the taxability of operations provided by the branch to the parent company, and the applicable refund and deduction regime.

The DGT's ruling

The use of a logistics warehouse does not constitute a permanent establishment if the company does not hold ownership or a real right over it. If the company has a permanent establishment for different activities and with separate management, it must have its own NIF for the entity (key N) and another for the establishment (key W). Services provided by the branch to its parent company are not subject to VAT if the requirements of the Law are met. For the recovery of VAT, the entity may not use the special refund regime for non-established persons, but rather the general deduction and refund procedure.

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