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V2325-23 ·10 August 2023 ·consulta-vinculante Medium impact
Tax

Advisory services to non-EU individuals may be taxable in Spain if effectively used within national territory

A securities firm has queried whether its portfolio management and advisory services provided to non-resident individuals in third countries are subject to Spanish VAT under the effective use clause. The DGT has ruled that, while they might initially appear exempt, the new rule under Article 70.Two requires an analysis of whether such services are effectively used or exploited in Spain.

In 6 key points

How it affects those involved

This ruling increases the tax compliance burden for financial service providers offering remote services to non-EU clients, as they must now assess the actual location of service exploitation to determine VAT liability.

Lifecycle

2023-08-10PublishedPublished 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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