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V0074-22 18 January 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

The provision of services by a professional association to an administration is subject to VAT

A professional association inquires whether the legal-labor orientation services it provides to a Regional Ministry through an agreement are subject to or exempt from VAT. The DGT determines that, as the association acts in its own name and receives an amount for doing so, the operations are subject to the tax.

The question raised

Question posed: Whether said provisions of services are subject to and, where applicable, exempt from Value Added Tax.

The DGT's ruling

The professional association holds the status of entrepreneur or professional when it organizes personal and material resources to carry out an activity for consideration. By providing advisory services in its own name to the Regional Ministry and receiving consideration, the operations are considered provisions of services subject to VAT. In the absence of information regarding the nature of the services, they are not considered exempt.

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