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A legal advisory firm has requested clarification on whether its services regarding share purchase agreements provided to foreign clients are subject to Spanish VAT. The DGT has ruled that, as a general rule, these services are not subject to VAT, unless the rule of effective use applies if the service is utilised for operations within Spain.
This ruling clarifies the VAT treatment for cross-border legal services, confirming that the place of supply is determined by the recipient's location, provided the service is not effectively used within Spain.
The tax team reviews your specific situation.
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