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V0109-19 17 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · impuesto sobre actividades económicas

No IAE liability if services are rendered abroad; VAT investment applies

A Belgian resident consultant asks about IAE registration and taxation of services provided to a Spanish company. The DGT states that if services are rendered from Belgium, there is no IAE liability, VAT investment applies, and the consultant may be a IRPF taxpayer due to being the spouse of a diplomatic officer.

The question raised

Question raised: Whether registration in the Tax on Economic Activities is required.

The DGT's ruling

If the activity is carried out entirely from a tax residence abroad, it is not subject to the IAE as it is not exercised within national territory. In the event of travel to Spain where services are provided on a self-employed basis, IAE liability would arise, although the inquirer could be exempt. Regarding VAT, the reverse charge mechanism applies if the recipient is a business or professional in Spain. For IRPF, the inquirer could be a taxpayer if their spouse is a member of a diplomatic mission, unless they resided abroad prior to said condition.

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