VAT Treatment of the chain of supplies of goods destined for export
Binding tax ruling V0802-17, issued by the Spanish General Tax Subdirectorate from March 30, 2017.
A consultant company established in the Spanish VAT territory will purchase agricultural products on delivery terms FCA-port of origin to a factory also located in said territory for, then proceed to export them, figuring the factory as an exporter at export SAD.
In addition, on other occasions, goods will have no destination to export but to another EU Member State.
First, let’s look at the treatment of chain of supplies of goods with destination to export. It seems to be clear that there are two different supplies of goods for VAT purposes: one, the one carried out by the manufacturer to the consultant company and other, performed by the consultant company to its client established outside the European Union. However, there is a sole transport destined for a third country, so it will have to determine which of the supplies of goods is linked to the transport, being only this supply of goods exempt from VAT.
Therefore, in the event that the transport was linked to the second supply of goods, the first one (carried out by the manufacturer to the consultant company) would not be exempt from VAT, being the manufacturer obliged to charge the corresponding VAT. However, the second of the supplies of goods (made by the consultant to the non-Community recipient) would be exempt from VAT, assuming that the goods be transported outside the EU.
However, If the transport was linked to the first supply of goods, the first supply of goods (carried out by the manufacturer to the consultant company) would be exempt from VAT, assuming that the goods be transported outside the EU.
At this point it should be taken into account that although the linking of transportation can be proved by any means test admitted in law, according to the doctrine expressed by this Subdirectorate, the evidentiary requirement to prove the link of the transport to the a supply of goods will be appearing as an exporter in the SAD, and this even if the consultant ordered transport to custom of export or even international transport of the goods.
Therefore, since in the case that concerns us manufacturer appears as exporter in the SAD, since the first SUPPLY of goods is performed in conditions of delivery FCA-port of origin, these supplies of goods made by the manufacturer to the Inquirer in THE Spanish VAT territory will be exempt from VAT.
In addition, this Subdirectorate mentions that for cases like this where there is a supply of goods in chain bound for export, being the first supplier the exporter, the intermediary can be identified in box 31 of the SAD.
With respect to the supply of goods in chain whose destination is another EU Member State, the criterion would be the same as the one mentioned above, i.e., would have to determine which of the supply of goods would be linked the intra-Community transport, since only that transaction would be exempt.