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V3078-20 14 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · dropshipping

Dropshipping activities from China do not constitute VAT-taxable transactions or an obligation to settle the tax

A taxpayer queried the taxation of their dropshipping activity involving products sent from China to Spain or the Eurozone. The DGT has ruled that these sales are not subject to VAT because the transport does not originate within national territory and the final consumer acts as the importer.

The question raised

Taxation of the dropshipping activity carried out by the applicant regarding Value Added Tax. Obligation of pass-on in Value Added Tax.

The DGT's ruling

The deliveries from the Chinese supplier to the applicant are not subject to tax as the goods are not in the territory of application at the time they are made available. The subsequent sale by the applicant to the final consumer is also not subject to tax because the transport does not commence in the territory of application. The importation is carried out by the final consumer, who is the taxable person for said operation. The applicant is not obliged to settle the equivalence surcharge nor to file form 303 for these operations.

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