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V1412-14 27 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de bienes usados

Resale of used vehicles to French companies is subject to VAT and intermediation constitutes an intra-Community supply

A company that resells used vehicles purchased from private individuals and acts as an intermediary for French companies has requested a ruling on its VAT treatment. The DGT has determined that the resale does not qualify for the export exemption and that mediation services are intra-Community supplies not subject to tax in Spain.

The question raised

Taxation of said operations, both resale and intermediation, by Value Added Tax.

The DGT's ruling

The resale of used vehicles to French entrepreneurs under the special regime does not allow for the application of the exemption provided in Article 25 of Law 37/1992. Invoices must not itemize the VAT amount, which is understood to be included in the price. Intermediation services provided to French companies are located at the recipient's headquarters, being intra-Community supplies not subject to Spanish VAT. The entity must be registered in the Registry of intra-Community operators.

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