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V0085-15 14 January 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IVA · convenio de colaboración empresarial

Business collaboration agreements in public interest activities do not constitute taxable services

A foundation asks whether remuneration received by a regulatory council for promoting its involvement in public interest activities constitutes income for the foundation and a deductible expense for the council. The DGT states that, under the 2002 Law 49/2002, such support does not constitute public relations services subject to VAT.

The question raised

Whether they are attributable as income for the Agency and as a deductible expense for the employee, regardless of whether they hold a participation in the Agency.

The DGT's ruling

If the entity meets the requirements of Article 3 of Law 49/2002, the commitment to disseminate the collaborator's participation in its activities of general interest does not constitute a provision of services for VAT purposes. The amounts received under these agreements do not form part of the taxable base of the entity's operations. Conversely, if the activity does not fall under this regime, the amounts shall be considered consideration for an advertising service subject to the general rate of 21%.

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