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V0205-18 30 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

No VAT applies to equine physiotherapy for a foreign business with no Spanish establishment

A equine physiotherapist provides services to a New Zealand-based business in Spain to treat a horse during a competition. The tax authority determines the service is exempt from VAT as the client has no establishment, permanent presence or residence in the tax territory.

The question raised

Place of supply of the operations subject to the consultation for Value Added Tax purposes.

The DGT's ruling

For a provision of services to be subject to VAT pursuant to Article 69.1.1 of Law 37/1992, the recipient must be an entrepreneur or professional with the seat of their activity, a permanent establishment, or a domicile within the territory to which the tax applies. In this case, as the New Zealand client does not meet any of these requirements, the service is not deemed to have been performed in Spain.

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