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V1479-19 ·19 June 2019 ·consulta-vinculante Medium impact
Tax

Advertising and marketing services are not deemed performed in Spain if the recipient carries out no taxable transactions in the territory

A Swiss company inquired whether the advertising and marketing services it receives are subject to VAT in Spain under the effective use rule. The Directorate General for Taxes (DGT) ruled that, as the company is not established in Spain and does not carry out taxable transactions within the territory, this rule does not apply.

In 6 key points

How it affects those involved

This ruling clarifies the territorial scope of VAT for services provided to non-resident entities, confirming that the effective use rule cannot be applied to companies with no taxable presence in Spain.

Lifecycle

2019-06-19PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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