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V1897-20 11 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · dropshipping

Dropshipping with direct China-to-Europe shipping exempt from Spanish VAT

A dropshipping company inquires about VAT treatment for Chinese goods shipped directly to customers. The DGT confirms that these operations are not subject to Spanish VAT as the transport does not originate within Spain.

The question raised

Question raised: Taxation under Value Added Tax on the operations carried out by the taxpayer. Obligation to declare and settle the Tax. Right to the deduction of input tax, where applicable, in connection with the conduct of its activity.

The DGT's ruling

The deliveries from the Chinese supplier to the taxpayer are not subject to tax as the goods are not in the territory of application at the time they are made available. The subsequent sale by the taxpayer to the final consumer is also not subject to VAT in Spain because the transport does not commence in said territory. The importation of the goods is carried out by the final customer, who assumes the status of taxable person. The taxpayer's activity does not generate operations subject to VAT.

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