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A company sought clarification on whether maritime transport contracted through a freight forwarder to move goods from India to Peru was subject to VAT or exempt. The DGT ruled that the service is subject to tax, but the export exemption cannot be applied.
Question raised: Taxation of the transport service.
The transport service is located within the territory to which the tax applies because the recipient is a business established in Spain. However, the transaction does not constitute an export since the goods are not from the Union nor do they leave the customs territory of the Union, as the movement begins and ends outside of it. Therefore, the requirements for the exemption of services related to exports are not met.
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