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V2330-18 ·20 August 2018 ·consulta-vinculante Medium impact
Tax

Free advertising services provided for a company's own business purposes are not subject to VAT

A broadcasting company has requested a ruling on whether free advertising offered to non-profit organisations to improve its public image is subject to VAT. The Directorate General for Taxes (DGT) has determined that, as these services serve the company's own business purposes, they do not constitute self-consumption of services.

In 6 key points

How it affects those involved

This ruling clarifies that promotional activities intended to benefit the company's own commercial interests do not trigger VAT liabilities under the concept of self-consumption.

Lifecycle

2018-08-20PublishedPublished 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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