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V1891-19 18 July 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Transport services provided to a business client resident in Spain are subject to VAT

An international transport company sought clarification on whether its transport services for a construction project in a third country were subject to VAT. The DGT ruled that, as the client is a business established in Spain, the service is deemed to be provided within Spanish territory.

The question raised

Place of performance of the operations carried out by the applicant.

The DGT's ruling

The transport services provided by the applicant to a client who is an entrepreneur or professional established in the territory of application of the tax are subject to VAT pursuant to Article 69.One.1º of Law 37/1992. These services are not considered to be directly related to real estate, therefore the applicant must charge the corresponding tax amount to the client.

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