Skip to content
Back to index
V0272-19 12 February 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asesoramiento en materia de inversión

Investment advisory and order execution services are independent for VAT purposes

A private banking entity sought clarification on whether recurring investment advice and order execution constitute independent services. The DGT has ruled that they are distinct services and that advisory services must be taxed at the standard rate.

The question raised

Whether said services can be considered independent for the purposes of Value Added Tax.

The DGT's ruling

The provision of investment advice is a service independent of the execution and receipt of orders, as MiFID II regulations grant it its own substance and differentiated added value. The advisory service is not exempt and VAT must be applied at the general rate of 21%. Conversely, order execution services are exempt from VAT pursuant to Article 20.One.18º.k) of Law 37/1992.

Book your free first meeting