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V3140-20 20 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Supply of goods to the European Space Agency destined for the Netherlands is subject to VAT but exempt via refund

A company manufactures components for the European Space Agency to be sent to the Netherlands, but the agency lacks a VAT number. The DGT determines that the transaction is subject to VAT in Spain as it is the place where transport begins; however, the intra-Community exemption does not apply due to the absence of a VAT number, meaning the special refund regime must be applied for this organisation.

The question raised

Exemption from Value Added Tax.

The DGT's ruling

The supply of goods is subject to VAT in Spain when the transport begins in national territory. The exemption for intra-Community supplies under Article 25 of the VAT Law is not applicable as the acquirer does not possess a VAT identification number from a Member State. However, the transaction is exempt under the special regime of the European Space Agency, and the tax refund mechanism provided for in Royal Decree 1617/1990 must be applied since the supply is not intended for locations in Spain.

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