VAT exemption on exports of goods to the United States

The Directorate General of Taxes (DGT) has issued a relevant ruling for companies operating in the international market, specifically those making deliveries of goods destined for the United States. The resolution addresses the application of Value Added Tax (IVA) in these operations and delimits tax competencies in a cross-border context.

What the DGT has ruled

The DGT establishes that deliveries of goods destined for the United States are considered exports and, therefore, are exempt from IVA in accordance with current regulations. For this exemption to be applicable, it is essential to comply with the established legal requirements, highlighting the need to justify the effective exit of the goods from the territory of the European Community.

Furthermore, the tax authority has clarified that its competence is strictly limited to the scope of Spanish IVA. Consequently, the DGT has no jurisdiction to analyze or rule on obligations derived from the US tax, known as sales tax, nor on the need for registration or collection in the various states of said country.

What it means for you

If your company exports products to the United States, you should not charge Spanish IVA on your invoices, provided that you have the documentation proving that the goods have left the European Union. Compliance with this burden of proof is fundamental to avoid contingencies in a tax inspection.

It is important to distinguish that the exemption from Spanish IVA does not exempt you from the tax obligations that may arise in the destination country. The management of local taxes in the United States is a matter external to Spanish regulations and must be treated independently.

What you should do

To ensure the correct application of the exemption, companies should:

• Maintain exhaustive documentation demonstrating the effective exit of the goods from the territory of the European Union.
• Verify compliance with the requirements provided in Law 37/1992 and RD 1624/1992.
• Independently evaluate tax obligations in the United States, given that the Spanish IVA exemption does not cover US sales tax.

Each export situation must be analyzed to ensure that all exit and documentation requirements demanded by the regulations are met.