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V2970-14 3 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Direct shipments from China to customers are not subject to VAT in Spain

An online toy retailer requests their Chinese supplier to ship products directly to customers in Spain. The Tax Agency has ruled that the sale is not subject to Spanish VAT because the delivery is deemed to take place in China.

The question raised

Taxation of operations under Value Added Tax.

The DGT's ruling

The taxpayer acts on their own behalf when purchasing from the supplier and reselling to the customer, with two independent deliveries of goods occurring. However, as the goods are shipped directly from China to the final customer, the taxpayer's delivery is understood to be made outside the territory to which VAT applies. Therefore, the sale operation is not subject to the tax in Spain. The importation is carried out by the final customer, who assumes the status of importer and taxable person.

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