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V0936-19 ·29 April 2019 ·consulta-vinculante Medium impact
Tax

Advertising services may be subject to VAT in Spain if used for taxable transactions within the territory

A Swiss company has requested clarification on whether advertising and marketing services provided by a Spanish subsidiary are subject to VAT and how to recover the input tax. The DGT explains that, even if general rules of location do not apply, they could be taxed based on the effective use criterion if linked to taxable transactions in Spain.

In 6 key points

How it affects those involved

Companies providing services to foreign entities must assess whether the effective use of those services within Spanish territory triggers VAT obligations, even if the standard place of supply rules suggest otherwise.

Lifecycle

2019-04-29PublishedPublished 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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