Skip to content
Back to index
V0136-15 19 January 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · localización de las prestaciones

IVA must be charged on brand management if economic activity takes place in Spain

A Barcelona-based company asked whether VAT should be applied to brand registration services for a client in Puerto Rico, both for the Spanish and UK and Algerian brands. The DGT replied that VAT should only be charged on the Spanish brand, as the economic activity will take place in Spain.

The question raised

The entity questions whether they must charge value added tax on the invoicing of said operations or only for the trademark directly registered in Spain.

The DGT's ruling

Management services for trademark registration are considered advisory services pursuant to Article 69.Two.d) of the VAT Act. If the effective use or exploitation of the trademark occurs in Spain, the service is located in the national territory and is subject to tax. Conversely, trademark registration services abroad are not located in Spain and are not subject to VAT.

Book your free first meeting