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V0455-17 20 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción al impuesto

VAT liability for services provided by a partner to their company depends on the existence of an employment relationship

A partner in a consultancy firm asks whether their services as a real estate agent are subject to VAT. The DGT rules that it will depend on whether the relationship is one of independence or labour subordination.

The question raised

Liability for Tax on the services provided by the applicant to the commercial company.

The DGT's ruling

To determine the liability for VAT, it must be analyzed whether the partner acts independently or under labor subordination. The relationship shall be an employment relationship and not subject to the tax if the professional submits 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. If the partner organizes their own means, assumes the economic risk, and is liable to third parties, the activity shall be subject to VAT.

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