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V1629-23 9 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

The German company must charge VAT if it is considered to have a permanent establishment in Spain

A German company inquired whether it should charge VAT on its construction works and whether it required a Spanish bank account. The DGT indicates that, as the works exceed twelve months, a permanent establishment exists and, therefore, the company is a taxable person for the tax.

The question raised

Question posed: Whether the consulting company must charge Value Added Tax to the recipient of the operations in question and whether it is necessary for it to hold an account in a Spanish financial institution.

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