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V0311-20 11 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · agente comercial

Services provided by a commercial agent acting in their own name are subject to 21% VAT

A local council has requested a ruling regarding the VAT and Income Tax (IRPF) treatment of an invoice for a concert issued by a commercial agent rather than the musical group itself. The Directorate General for Taxes (DGT) has determined that if the agent acts in their own name, the service is subject to the standard rate of VAT, and the fees constitute income from professional activities subject to income tax withholding.

The question raised

Taxation in VAT and Personal Income Tax (withholding).

The DGT's ruling

When a commercial agent acts in their own name and mediates in a provision of services, it is understood that they have received and provided the services themselves. In this scenario, the services provided to the city council by the agent are taxed at the general VAT rate of 21%. Regarding Personal Income Tax (IRPF), fees for musical performances are classified as income from professional activities, which entails their subjection to withholding tax.

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