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V3216-15 21 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Sales of goods from the Canary Islands to mainland Spain or third countries are not subject to VAT

A company based in the Canary Islands has requested clarification on whether the online sale of leather shoes and accessories from the islands to mainland Spain or abroad is subject to VAT. The Directorate General for Taxes (DGT) has ruled that, as the transport commences in the Canary Islands, these transactions are not considered to have taken place within the territory where the tax applies.

The question raised

Liability for operations and obligations of the taxpayer in relation to Value Added Tax.

The DGT's ruling

The sale of tangible goods via the internet constitutes supplies of goods. However, as these are movable goods that must be subject to dispatch or transport from the Canary Islands to the acquirer, it is not understood that the supply takes place within the territory to which VAT applies. Therefore, these operations are not subject to the tax within the territory to which it applies, without prejudice to the taxation applicable in the Canary Islands.

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