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V0702-22 1 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · reglas de localización

Mediation services provided to companies outside Spain may be subject to VAT if their effective use or exploitation occurs in national territory

A taxpayer has enquired whether their commercial agency services for a Chinese company are subject to VAT and if they can deduct the tax incurred. The DGT explains that, although the general rule places the provision of services outside Spain, the rule of effective use and exploitation may apply if the service is utilised within Spanish territory.

The question raised

Whether the services provided by the applicant are subject to value added tax and whether the applicant may deduct the amounts of said tax incurred within the territory of application of value added tax.

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