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V2890-18 8 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Transfer of right of disposal constitutes a supply of goods, even if legal title is not transferred

A German company sought clarification on whether shipping goods to a client's warehouses in Spain—where the client assumes risks and control but retains legal title until consumption—constituted an intra-Community supply. The DGT ruled that because the right of disposal is transferred with the powers of an owner, it does constitute an intra-Community supply and an intra-Community acquisition of goods.

The question raised

Question posed: Whether the operations carried out by the consultant constitute an intra-Community supply of goods, or an operation assimilated to an intra-Community acquisition of goods in the territory of application of the tax.

The DGT's ruling

The delivery of goods is the transfer of the power of disposal over tangible goods with the powers attributed to its owner, regardless of the transfer of legal ownership. In the case analyzed, as the client assumes the risk and control of the stock for its use, it is understood that they have the power of disposal. Therefore, the operation is an intra-Community supply in Germany and an intra-Community acquisition of goods in Spain.

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