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V2174-20 ·29 June 2020 ·consulta-vinculante Medium impact
Tax

Financial advisory services are subject to VAT and classified as income from economic activities for Income Tax purposes

A self-employed professional inquired whether their advisory services regarding the purchase and sale of financial products for a company are exempt from VAT and how they are taxed for Income Tax purposes. The Directorate General for Taxes (DGT) ruled that such advisory services are subject to VAT and that the income must be classified as income from economic activities.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment for financial consultants, confirming that their services do not qualify for VAT exemptions and must be reported as business income rather than other types of income.

Lifecycle

2020-06-29PublishedPublished 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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