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V3652-20 29 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · entrega de bienes

Sale of printed laminates in Germany constitutes a goods delivery, not an electronic service

A Spanish business sells images online, printed and delivered by a third party in Germany. The DGT determines this constitutes a goods delivery, not an electronic service, and assesses its VAT and IRPF liability.

The question raised

1.- Value Added Tax: regarding the sale of prints, the obligations that would arise both in Spain and in Germany.

The DGT's ruling

The sale of prints is not a service provided by electronic means, but rather a supply of goods. If the shipment originates in Germany towards customers in Spain, the transaction shall be subject to VAT if the seller exceeds 35,000 euros annually or if they opt to be taxed in Spain. Printing services from Germany to Spain are subject to VAT via the reverse charge mechanism. For Personal Income Tax (IRPF), the entrepreneur resident in Spain shall be taxed on their worldwide income, and the earnings are classified as income from economic activities.

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