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V0399-22 28 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IRPF · residencia fiscal

Fiscal residence determined by physical presence or economic activities; VAT based on client status

A marine maintenance professional enquires about his tax residence in IRPF and VAT treatment of his services. The DGT clarifies that tax residence depends on physical presence or the economic activity base, and VAT applies based on whether the client is a business entity or not.

The question raised

1.- Determination of tax residence for Personal Income Tax purposes.

The DGT's ruling

In Personal Income Tax (IRPF), residence is determined by remaining in Spain for more than 183 days or by having the core of economic activities located here. In VAT, as no materials are provided, their services constitute the provision of services; if the client is a taxable person in the territory where the tax applies, the reverse charge mechanism shall apply. As they are located in the Canary Islands, operations with the mainland are not intra-Community.

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