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A Spanish law firm has requested clarification on whether judicial claim services provided by a collaborator in Saudi Arabia are subject to Spanish VAT and how potential double taxation with Saudi tax applies. The DGT ruled that the service is located in Spain because the recipient is an entrepreneur established there.
This ruling clarifies the VAT treatment for cross-border legal services, confirming that when the recipient is a Spanish-established professional, the reverse charge mechanism applies, regardless of the provider's location.
The tax team reviews your specific situation.
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