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V1954-14 17 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Supply of goods with installation abroad is exempt from VAT and services received from Chile are subject to reverse charge

A Spanish company has requested clarification regarding the application of VAT on the installation of machinery exported to Chile and on supervision services contracted from a Chilean company. The DGT has determined that the supply of goods is not subject to VAT as the installation takes place outside of Spain, and that the services received are subject to tax via the reverse charge mechanism.

The question raised

Liability for Value Added Tax on the assembly service performed by the applicant for its client and the service received from the Chilean company.

The DGT's ruling

Deliveries of goods requiring assembly and immobilization, where the cost exceeds 15% of the consideration, are deemed to take place where the assembly is completed; if this occurs outside of Spain, they are not subject to VAT. Services provided by a company not established in Spain to a taxable person resident in the national territory are subject to VAT in Spain. In this case, the applicant must apply the reverse charge mechanism. The accounting voucher for the service received must be recorded in the Register of Invoices Received.

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