On August 9, the General Directorate of Taxes (DGT) issued a resolution with number V1886-22 regarding a query raised for one of our clients regarding the VAT taxation of deliveries of goods carried out by a foreign parent company for its Spanish branch.
This is a new pronouncement on VAT in operations between a parent company and its branch with the particularity that in this case the question raised refers to deliveries of material and not to the provision of services (the questions raised by provision of services have always been considerably more numerous). It is also a controversial issue, especially as a result of the resolution issued by the Central Economic-Administrative Court in 2020, which contemplated the possibility that the provision of services between a parent company and its branch could be subject to VAT. Something that, in principle, is not in line with numerous jurisprudence of the Court of Justice of the EU (CJEU).
Source Madrid VAT Forum
ECJ Cases
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