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V0272-19 ·12 February 2019 ·consulta-vinculante Medium impact
Tax

Investment advisory and order execution services are independent for VAT purposes

A private banking entity sought clarification on whether recurring investment advice and order execution constitute independent services. The DGT has ruled that they are distinct services and that advisory services must be taxed at the standard rate.

In 6 key points

How it affects those involved

Financial institutions must distinguish between advisory and execution services to ensure correct VAT application, as advisory services do not qualify for exemption.

Lifecycle

2019-02-12PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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