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V3088-17 ·28 November 2017 ·consulta-vinculante Medium impact
Tax

VAT applicability to services provided by a shareholder to their company depends on independence or subordination

A shareholder and CEO of a security company sought clarification on whether their management and executive services were subject to VAT. The DGT ruled that VAT applicability depends on whether the relationship is one of employment (not subject to VAT) or independent professional services (subject to VAT), based on an analysis of autonomy, remuneration, and responsibility.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment of services provided by company owners or directors, emphasizing that the distinction between employment and professional services is crucial for VAT purposes.

Lifecycle

2017-11-28PublishedPublished 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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