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V2411-21 14 September 2021 · SG de Fiscalidad Internacional Criterion in force
IRNR · establecimiento permanente

No permanent establishment if storage and delivery is auxiliary

A Turkish company asks whether importing, storing in a rented premises and delivering components via subcontractors in Spain constitutes a permanent establishment for IRNR and VAT. The DGT determines that if the activity is merely storage and delivery of already sold goods, it is auxiliary and does not constitute a permanent establishment.

The DGT's ruling

For Non-Resident Income Tax (IRNR), the activity of storing and delivering goods already sold is considered auxiliary under the Spain-Turkey Convention, and therefore no permanent establishment exists. For VAT, the ownership of the right to use a warehouse and the subcontracting of delivery constitute a permanent establishment. Regarding VAT, the company is a taxable person for imports and deliveries of goods, being entitled to deduct and request the refund of tax amounts in accordance with Law 37/1992.

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