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V0360-16 2 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

VAT applicability to services provided by a shareholder to their company depends on independence or subordination

An engineering company has requested clarification on whether services provided by its sole shareholder as an engineer are subject to VAT. The DGT has ruled that applicability depends on whether the relationship is employment-based (subordinate) or constitutes an independent professional activity.

The question raised

Liability for services provided by the sole partner to the consulting company.

The DGT's ruling

To determine liability for VAT, it must be analyzed on a case-by-case basis whether a relationship of subordination or independence exists. The relationship shall be employment-based and not subject to tax if the partner is subject to the organizational criteria of the company, does not receive remuneration linked to the results of their activity, and the company is liable to third parties. Conversely, if the partner organizes their own means, assumes the economic risk, and is liable to third parties, the provision shall be subject to VAT.

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