SPANISH VAT: SALES FROM GERMANY TO SPANISH COMPANIES WITH TEMPORARY STORAGE IN SPAIN

May 8, 2017

Whenever a German company rents a warehouse located on Spanish territory for storing products coming from Germany to be sold to Spanish companies, this could be interpreted as the existence of a permanent establishment from a VAT perspective.

In such case, the permanent establishment would have to declare the products coming from Germany to the Spanish warehouse as an intra-community purchase what Intrastat and VAT refers to.

The subsequent sale (or delivery) of these products to Spanish companies (clients), however, must not include Spanish VAT, as the reverse-charge applies.

What the Spanish input tax paid by the permanent establishment refers to (e.g. for the warehouse rent), applications for refund shall not be made as set forth for non-resident (form “361“), but through the quarterly VAT return (form “303“).

We shall be pleased to support all those clients of yours who precise an advice on this matter.