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V1521-17 15 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sale of cruise ship equipment may be VAT exempt subject to use and registration requirements

A company sought clarification on whether the supply of fire protection equipment for tourist cruise ships was exempt from VAT. The DGT has ruled that the export exemption does not apply if the goods are incorporated into the vessel; however, exemptions under Articles 22 and 10 may apply if the purchaser is the holder of the activity and the vessel is registered.

The question raised

Whether the described operation is exempt by virtue of Article 22 of Law 37/1992 or Article 25 of the same regulation.

The DGT's ruling

The exemption under Article 25 of Law 37/1992 does not apply if the goods are incorporated into the vessel instead of being transported to another Member State. The exemption under Article 22 is applicable if the acquirer is the holder of the vessel's operation and the transfer is carried out following the definitive registration of the vessel in the Maritime Registry. Furthermore, the requirements of Article 10 of the VAT Regulation and customs regulations regarding the bill of lading must be met.

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