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V1641-24 5 July 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Inversion of the tax liability applies when a non-EU entity carries out domestic operations

The DGT confirms that an Italian entity with a Spanish VAT number (starting with N) must apply the inversion of the tax liability if its operations are considered carried out within Spain.

The question raised

It is questioned whether the Italian entity must charge Value Added Tax for operations carried out within the territory of application of the Tax or whether the reverse charge mechanism would apply.

The DGT's ruling

If the Italian entity is not established in Spain but carries out operations deemed to be performed in Spanish territory, it must use its NIF with the N prefix and the reverse charge mechanism shall apply. In the case of intra-Community acquisitions of goods from Italy, the Italian entity must use its Italian VAT number and the taxpayer shall carry out an intra-Community acquisition of goods.

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