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V0045-18 15 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción al impuesto

VAT liability for partner services depends on independence or employment relationship

A law firm has requested clarification on whether professional services provided by its partners are subject to VAT. The DGT has ruled that VAT liability depends on whether the relationship is one of independence or employment subordination, assessing factors such as organisation, remuneration, and responsibility on a case-by-case basis.

The question raised

Liability for Value Added Tax on services performed by partners.

The DGT's ruling

To determine liability for VAT, it must be analyzed whether the partner acts independently or under a regime of labor dependency. The relationship is labor-based (not subject to VAT) if the professional is subject to the organizational criteria of the company, does not receive remuneration linked to the results of their activity, and the company is liable to third parties. Conversely, if the partner organizes their own means, receives consideration linked to results, and is liable to third parties, the activity is subject to the tax.

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