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V0404-14 14 February 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Remuneration for serving on a Board of Directors is subject to VAT

A query was raised regarding whether payments received by a commercial company for acting as a member of another company's Board of Directors are subject to VAT. The DGT ruled that such activity constitutes a taxable supply of services.

The question raised

Question posed: Liability for Value Added Tax on remuneration received as a member of a Board of Directors,

The DGT's ruling

The performance by a commercial company as a member of the Board of Directors of another distinct company must be classified as a supply of services subject to and not exempt from Value Added Tax. In the absence of an applicable exemption, the tax must be charged at the general rate through the issuance of the corresponding invoice.

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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