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V0367-22 24 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio único

A sporting event for a non-EU client may be exempt from VAT

A Mexican company without a permanent establishment in Spain hires an international sporting event organisation. The DGT determines that event organisation constitutes a unique service and, as the client has no establishment in Spain, the transaction is not subject to VAT.

The question raised

Question posed: Treatment of operations for Value Added Tax purposes.

The DGT's ruling

The organization of a sporting event is a single or complex service composed of a plurality of closely linked elements. If the recipient is a businessperson or professional, the supply is understood to be made at their registered office or permanent establishment. As the consulting entity does not have an establishment in Spain, the organization service is not subject to VAT. However, if the recipient is not a businessperson, the service is understood to be made in Spain if it is materially provided within this territory.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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