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V2122-19 12 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Sales of goods manufactured in China and sold in the US are not subject to Spanish VAT

An individual inquired whether the sale of goods manufactured in China and sold to customers in the United States via a third-party website is subject to VAT. The Directorate-General for Taxes (DGT) ruled that the tax does not apply because neither the making available nor the transport of the goods begins in Spanish territory.

The question raised

Liability of the operations for Value Added Tax and the obligations derived therefrom.

The DGT's ruling

The supply of goods is not subject to VAT when neither the making available of the goods to the acquirer occurs within the territory to which the tax applies, nor the dispatch or transport of the goods commences within said territory. In this case, as the sale is carried out between China and the United States without the goods entering Spain, the territoriality requirements for tax liability are not met.

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