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V2273-18 1 August 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · fianza

Late return of waste bond is exempt from VAT and storage in France is not taxable in Spain

A company requested clarification regarding the VAT treatment of monthly penalties for failing to return waste on time. The DGT ruled that the bond is not subject to VAT and that the storage service provided in France is not considered to have been rendered in Spanish territory.

The question raised

VAT treatment of the amounts that, as a penalty, the applicant is obliged to pay monthly for as long as the return of the waste does not take place.

The DGT's ruling

The transfer of money as a security deposit to guarantee an obligation is not subject to VAT as there is no remunerated provision of services. Radioactive waste storage services are considered to be provided in the location where the property intended for such purpose is situated. Therefore, if the warehouse is in France, the service is not subject to Spanish VAT. Third-party services shall be located according to the general rules or as ancillary to the storage.

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