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V2632-20 12 August 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · dropshipping

Dropshipping from China exempt from Spanish VAT

A dropshipping company inquires about the VAT treatment of products shipped directly from China to customers. The DGT confirms that these operations are not subject to Spanish VAT because the transport does not start in Spanish territory and the end customer acts as importer.

The question raised

Question raised: Taxation under Value Added Tax on the operations carried out by the taxpayer. Obligation to declare and settle the Tax. Right to the deduction of the input tax, where applicable, in connection with the conduct of its activity.

The DGT's ruling

The delivery from the Chinese supplier to the taxpayer is not subject to tax as the goods are not in the territory of application at the time they are made available. The sale by the taxpayer to the final consumer is also not subject to VAT in Spain because the transport does not commence in said territory. The importation of the goods is carried out by the final purchaser, who is the taxable person for said operation. The taxpayer's activity does not give rise to operations subject to VAT.

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