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V2681-18 2 October 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

Transport services to professional clients in other Member States are not subject to Spanish VAT

A software company has requested a ruling regarding VAT liability and the obligation to report via Form 349 for transport services provided by its clients to recipients in other EU countries. The Directorate-General for Taxes (DGT) has ruled that, as the recipients are established in other Member States, the place of supply is not Spain and therefore no VAT is due.

The question raised

The taxpayer raises the question of the liability for Value Added Tax regarding the following operations carried out by one of its clients, as well as the obligation to report them through Form 349:

The DGT's ruling

Freight transport services provided to a taxable person or professional who has their place of business or permanent establishment in another Member State of the European Union are understood to be carried out in said State. Therefore, if the recipient is established in another Member State, the transaction is not understood to be carried out in the territory of application of Spanish VAT and is not subject to the tax. To consider the client as a taxable person, the provider may rely on the communication of their VAT number and the confirmation of its validity.

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