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V0281-22 15 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Application of the reverse charge mechanism to advertising services received from non-EU companies

A company has requested clarification on whether it must charge VAT on advertising services contracted from companies located outside the European Union. The Directorate General for Taxes (DGT) has ruled that if the service is taxable in Spain, the company will be the taxable person through the reverse charge mechanism.

The question raised

Whether the applicant must charge the corresponding value added tax on the services received.

The DGT's ruling

Advertising services are subject to tax in Spain if the recipient is a business or professional with a registered office or establishment in Spanish territory. In this case, the applicant shall be the taxable person under the reverse charge mechanism if the provider is not established in Spain. If the applicant is not a business but holds a VAT number, the rules of localization also apply as they are deemed to be a business for tax purposes.

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