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V2280-19 3 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · transporte de mercancías

Transfer of vehicles to the EU is not subject to VAT; IAE classification depends on the nature of the service

A transport company has requested clarification on whether transferring vehicles to EU-based entrepreneurs falls under its transport heading or is classified as the supply of personnel, as well as its VAT treatment. The DGT clarifies that IAE classification depends on whether a full transport service is provided or merely the supply of drivers, and that the operation is not subject to Spanish VAT.

The question raised

1: Whether heading 722 of the Tax on Economic Activities (IAE) authorizes the conduct of the activity carried out by the applicant.

The DGT's ruling

In the IAE, the transfer of vehicles with trailers constitutes the transport of goods, but if drivers are merely made available to others, it constitutes the supply of personnel. Regarding VAT, as these are services provided to entrepreneurs not established in Spain, the supply is not deemed to be carried out in Spanish territory and is not subject to the tax. Nevertheless, the provider is obliged to issue an invoice for the transaction.

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