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V5363-16 19 December 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · adquisición intracomunitaria

Exemption from intracommunity purchases not applicable if Spanish VAT ID used

An Italian company asked whether it could benefit from article 26.3 of the VAT Law in triangular transactions and whether using a subsidiary warehouse constituted a permanent establishment. The DGT clarifies that using a warehouse for storage does not constitute a permanent establishment, but warns that the exemption from triangular transactions requires no identification with a Spanish VAT ID.

The question raised

Application of the exemption contained in Article 26.Three of Law 37/1992.

The DGT's ruling

To apply the exemption under Article 26.three, the acquirer must be identified in another Member State and not in the territory of application of the tax. If the operator uses a VAT number assigned by the Spanish Administration, the intra-Community acquisition shall be subject to tax and not exempt. Likewise, the mere fact of using warehouses managed by a subsidiary does not imply the existence of a permanent establishment if only a storage service is received.

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