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V2141-18 ·18 July 2018 ·consulta-vinculante Medium impact
Tax

Consultancy services received by a Canary Islands subsidiary may be subject to VAT if used for mainland operations

A company sought clarification on whether services provided by mainland suppliers to its Canary Islands subsidiary were subject to VAT, given that the subsidiary uses them to serve clients on the mainland. The DGT explains that, although the subsidiary is located in the Canary Islands, if the services are effectively used to carry out VAT-taxable operations on the mainland, the rule of effective use applies.

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2018-07-18PublishedPublished 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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