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V2422-14 15 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

Use of third-party facilities for unloading and storage does not constitute a permanent establishment

A Spanish company asked whether a German company using its facilities for unloading and storing goods without having a specific physical location constitutes a permanent establishment in Spain. The DGT concludes that no permanent establishment exists and assesses VAT liability for the services provided.

The question raised

It is desired to know whether the German company has a permanent establishment in Spain and the tax liability of the services received by the applicant.

The DGT's ruling

For a permanent establishment to exist, a structure with its own or subcontracted human and technical resources with a sufficient degree of permanence is required. The provision of unloading, storage, and transport services by a third party does not determine that the non-established client has a permanent establishment. Storage and unloading services shall not be subject to VAT in Spain if the recipient is a business not established in the territory.

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