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V2645-19 26 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Vehicle purchases from dealerships are subject to 21% VAT if made available within the territorial scope

A natural person resident in the Canary Islands has enquired whether the acquisition of a vehicle from a dealership for private use is subject to VAT. The DGT has ruled that the transaction is subject to the tax because the seller is a taxable person and the goods are delivered within the territorial scope.

The question raised

Liability for Value Added Tax regarding said transfer.

The DGT's ruling

Deliveries of goods made by entrepreneurs or professionals in the course of their activity are subject to VAT. In deliveries of goods that are not subject to dispatch or transport, the taxable event is deemed to occur when the goods are made available to the acquirer within the territory of application of the tax. Therefore, the dealer must charge the general rate of 21% when delivering the vehicle in said territory.

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