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V0380-14 14 February 2014 · SG de Fiscalidad Internacional Criterion in force
IVA · prestación de servicios

Tourist guiding services outside Spain exempt from Spanish VAT and IRNR

A Spanish resident guide asks whether services provided abroad and payments to local professionals are subject to Spanish taxes. The DGT confirms that services rendered outside Spain are not subject to Spanish VAT, and payments to foreign professionals do not trigger IRNR as they are not made within Spanish territory.

The question raised

Whether the operations carried out with other entrepreneurs or professionals for the provision of tourist guide services outside of Spain are intra-Community and whether they are subject to withholding if they are professional activities carried out by natural persons. Questions are raised regarding VAT, concerning the duty to charge this tax to tourists outside of Spain and which rate is applicable, whether Article 70 of the LIVA applies in the case presented, and whether the provision of services is a transaction subject to, not subject to, or exempt from VAT if performed in a territory other than the common territory.

The DGT's ruling

The tourist guide service provided to private individuals is not subject to Spanish VAT when it is materially provided in another Member State or in a third country. Regarding Non-Resident Income Tax (IRNR), payments made by the taxpayer to foreign professionals are not considered income obtained in Spanish territory, as the services are utilized abroad. For registration obligations or rates in other countries, reference must be made to the regulations of each territory.

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