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V0007-19 3 January 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio único de organización

Invoices must be rectified and VAT refunded if organisation services are not subject to tax

A company provided exhibition organisation services to a client not established in Spain and charged VAT. The client is requesting a refund, arguing that the VAT charge was improper.

The question raised

Whether there is an obligation to rectify said invoices and to refund the Tax amounts collected from the aforementioned client.

The DGT's ruling

Event organization services are considered a single service. If the recipient is a business without a registered office, permanent establishment, or domicile in the territory to which the tax applies, the provision is not subject to VAT. In the event of improper charge, the provider must rectify the tax amounts by means of a credit note and may opt for the procedure of rectifying self-assessments or regularize the situation in subsequent returns. The recipient who bore the charge has the right to request a refund of the undue payment.

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