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A company has requested clarification on whether it must charge VAT on advertising services contracted from companies located outside the European Union. The Directorate General for Taxes (DGT) has ruled that if the service is taxable in Spain, the company will be the taxable person through the reverse charge mechanism.
Companies procuring advertising services from providers outside the EU must apply the reverse charge mechanism to account for VAT in Spain, provided the service is deemed taxable within the Spanish territory.
The tax team reviews your specific situation.
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