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V0016-19 3 January 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · agente bancario

Banking agent activity may be classified as professional and services are typically VAT exempt

A taxpayer has enquired whether their activity as a banking agent constitutes a business or professional activity and if it is exempt from VAT. The DGT has determined that if the activity is carried out personally without an established organisation, it is classified as a professional activity and its services are generally exempt from VAT.

The question raised

Whether the activity has a business or professional character, the heading in which it must be registered, and whether it is exempt from Value Added Tax.

The DGT's ruling

If the activity of credit institution agent is carried out by a natural person on their own account and personally, without a business organization, it is a professional activity that must be registered under heading 799 of the second section of the IAE Tariffs. Regarding VAT, mediation services in exempt financial operations are also exempt. If the subject performs exclusively taxable and exempt operations, they are not obliged to submit self-assessments.

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