Doctrine by topic · DGT Observatory

Place of Economic Activity: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 10 rulings · 2014–2022

Current position

The place of economic activity or permanent establishment requires an adequate structure of human and technical resources with a sufficient degree of permanence. The mere storage of products in third-party warehouses, the existence of a subsidiary, or the use of the tax identification number are not sufficient to prove such a condition. Under the travel agency regime, operations are located where the agency has established its headquarters or permanent establishment.

The DGT's position remains constant regarding the definition of a permanent establishment. Throughout the rulings, it has been reiterated that the existence of such an establishment requires human and technical resources with sufficient permanence, ruling out that the simple storage of goods or logistical management by third parties determines the place of activity.

Turning points

  1. V2960-15

    Establishes that leased warehouses are a permanent establishment only if they have an adequate structure of human and technical resources with sufficient permanence.

  2. V1849-18

    Clarifies that the use of third-party logistical services or the placement of products in warehouses managed by clients does not determine the existence of a permanent establishment.

Analysis based on 8 of 10 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

10
V3396-15 4 Nov 2015

Application of the special regime for travel agencies and rules of localization

SG de Impuestos sobre el Consumo
régimen especial de agencias de viajesprestación de servicios únicasede de actividad económicaestablecimiento permanentelocalización de las prestaciones LIVA — Ley 37/1992 del IVA art. 69LIVA — Ley 37/1992 del IVA art. 70
Affects CompanyExpat · Non-residentIndividual

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