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V0328-19 15 February 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

The VAT taxable person is the actual service provider, regardless of who invoices at the client's request

A company transfers a business unit but continues to invoice a foreign client due to their bureaucratic requirements, even though the service is provided by the acquirer. The DGT clarifies that the taxable person is the actual provider and that the subsequent transfer of funds is not subject to VAT.

The question raised

Clarification of certain issues contained in the binding ruling of October 26, 2018, with reference number V2828-18.

The DGT's ruling

The person obligated to issue the invoice is the entrepreneur or professional who effectively provides the services, which in this case is the acquirer of the line of business. As the client is a recipient not established in the territory of application of the Tax, the provision is not understood to be carried out in Spain and is not subject to VAT. The transfers of money from the transferor to the acquirer are neither provisions of services nor deliveries of goods, therefore they are non-subject operations and do not require an invoice.

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