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V0069-20 15 January 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

VAT applicability to services provided by a partner to their company depends on use of own means and independence

An individual acting as a commission agent incorporates a company and continues to provide commission services to it. A query is raised regarding whether the services provided by the partner to the new company are subject to VAT.

The question raised

Taxation of the provision of commission services for Value Added Tax purposes.

The DGT's ruling

The liability for VAT on services provided by a partner to their company requires that the professional acts independently and organizes their own resources. It must be analyzed on a case-by-case basis whether subordination exists through the evaluation of working conditions, remuneration linked to results, and liability towards third parties. If the partner is subject to the organizational criteria of the company, does not receive remuneration linked to their results, and the company is liable towards third parties, the relationship is employment-based and not subject to VAT. Otherwise, if the partner organizes their own resources and assumes the economic risk, the provision of services shall be subject to the tax.

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