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V0651-20 2 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption may apply to the leasing of distribution networks if the contract is deemed insurance mediation

A consulting entity asks whether leasing its network of agents to market third-party insurance is exempt from VAT. The DGT rules that the exemption applies if the activity is not merely the provision of staff or support services, but rather mediation involving active client acquisition and participation in the conclusion of the contract.

The question raised

Clarification of certain issues resolved in the binding ruling of 29 October 2019, inquiry V3050-19, regarding the exemption provided for in Article 20.One.16 of Law 37/1992.

The DGT's ruling

The exemption under Article 20.One.16 of Law 37/1992 applies if the contract for making the network of agents available is considered a mediation contract. To this end, there must be active customer acquisition and participation in the contract execution phase, rather than being limited to support services (back office) or the mere provision of human resources. Remuneration based on a variable percentage of policies subscribed reinforces the nature of mediation as opposed to the mere provision of personnel.

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