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V0210-22 8 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · gestión de cobro

Card and direct debit collection services are subject to VAT and require invoicing

A local council enquired whether managing municipal revenue collections via card payments or direct debits is exempt from VAT. The DGT ruled that these services constitute collection management and are therefore subject to VAT, necessitating the issuance of invoices.

The question raised

Whether the services consulted are subject to or exempt from Value Added Tax and, where applicable, the applicable tax rate.

The DGT's ruling

Customer collection management services are not covered by the exemption for financial operations under Article 20.One.18 of Law 37/1992. As they are taxable services and not exempt, there is an obligation to issue an invoice to the recipient of the operations.

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