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V2052-16 ·12 May 2016 ·consulta-vinculante Medium impact
Tax

VAT applicability to services provided by a shareholder to their company depends on independence or subordination

A shareholder and sole director of a dental implant company has requested clarification on whether their management services are subject to VAT. The Spanish Tax Agency (DGT) has ruled that applicability depends on whether the relationship constitutes employment or an independent professional activity.

In 6 key points

How it affects those involved

This ruling clarifies the distinction between employment and professional services for company officers, affecting VAT obligations and tax treatment for self-employed directors.

Lifecycle

2016-05-12PublishedPublished 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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