Skip to content
Back to index
V3439-20 27 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · establecimiento permanente

Non-resident lessor may waive exemption for warehouse and become liable under the reverse charge mechanism

A German company intends to purchase a warehouse in Spain to lease it to another Spanish company. The DGT examines whether the German company is a taxable person, how to request VAT refunds, and which invoicing regulations apply.

The question raised

Question raised: Possibility of waiving the Value Added Tax exemption by the transferor of the warehouse. Deduction and/or refund regime applicable to the tax amounts incurred by the consultant both in the period in which the acquisition of the warehouse takes place and in subsequent periods. Possibility of using the NIF issued by the German authorities in the leasing of the warehouse.

The DGT's ruling

The German company is a professional entrepreneur and may waive the exemption on the transfer of the warehouse, thereby becoming a taxable person under the reverse charge mechanism. It does not have a permanent establishment in Spain if it does not possess human and technical resources for leasing. For the refund of tax amounts, it must use the general procedure provided in Article 115 of the Law if it is a taxable person under the reverse charge mechanism. Invoicing shall be governed by German regulations.

Email
Contact