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V0225-19 1 February 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · análisis financiero

Analysis or research services provided to mutual funds may be VAT exempt if they perform essential functions

A consulting entity has requested clarification on whether financial analysis services provided to Collective Investment Schemes and their management companies are exempt from VAT. The DGT has ruled that these services are exempt when they act as buy or sell recommendations and fulfill specific, essential functions for the management of the fund.

The question raised

Exemption from Value Added Tax on the payment of said analysis expense.

The DGT's ruling

Research or analysis services are subject to and exempt from VAT when outsourced to a third party and fulfill specific and essential functions of a mutual fund. In particular, they shall be exempt if they recommend or suggest an investment strategy that adds value to the fund's strategy. Conversely, if the service is limited to an advertising communication, it shall be subject to and not exempt.

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