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V0623-21 17 March 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Partner services may be income from work or economic activities; VAT liability depends on independence

The DGT clarifies that partner services are generally considered income from work under IRPF, and VAT liability depends on whether the relationship is one of independence or subordination.

The question raised

Question posed: Consultation regarding the taxation applicable to partners in Personal Income Tax for services rendered to the company and their possible liability for Value Added Tax.

The DGT's ruling

In Personal Income Tax, income from the company's business activities is considered employment income if it does not meet the requirements for economic activity under Art. 27.1 LIRPF. For VAT, liability depends on a case-by-case analysis of the partner's independence. It must be assessed whether the partner organizes their own means, assumes economic risk, and possesses organizational autonomy vis-à-vis the company.

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