The nonresident entity was using the factory, warehouse, and premises of the Spanish subsidiary and was even providing instructions to the subsidiary’s employees. In addition, the Swiss entity assumed all the risks. The court concluded that the Spanish subsidiary was a permanent establishment in Spain for VAT purposes and was required to charge Spanish VAT on its sales in Spain.
Source: Deloitte
See also THIS post about this case.
Latest Posts in "Spain"
- European Commission Takes Spain to EU Court Over Failure to Transpose VAT Directives for SMEs
- EU Takes Spain to Court Over Failure to Adapt VAT Rules for Small Businesses
- Deductibility of VAT on Museum Renovation by Protected Designation of Origin Regulatory Council
- VAT on Auctioned Commercial Property: DGT Rules on Exemption and Reverse Charge Mechanism
- Granting Air Rights for Wind Turbines on Rural Land: VAT Subject but Exempt, DGT Clarifies
