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V3175-15 20 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega intracomunitaria de bienes

Sales of sacks to a UK company are not VAT exempt if transport is not linked to the delivery

A company inquired whether the sale of sacks to a British client was exempt from VAT, given that they were subsequently transported to the United Kingdom. The DGT ruled that the exemption does not apply because the transport is not linked to the delivery of the sacks.

The question raised

Application of the exemption contained in Article 25 of Law 37/1992 to the supplies of sacks carried out within the territory of application of the Tax.

The DGT's ruling

For a supply of goods to be an exempt intra-Community supply, there must be transport of the goods from the territory of application of the Tax to another Member State linked to the supply. In this case, the transport is carried out subsequent to the transfer of the power of disposal of the sacks, therefore the operation is considered an domestic supply subject to VAT.

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