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V0751-20 7 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

IVA must be charged on repairs provided in Spain to a private individual in Andorra

A company asked whether VAT should be applied to a repair service provided to a private individual in Andorra, citing a double taxation agreement. The DGT replied that since the service was physically delivered in Spain, it is subject to VAT.

The question raised

Subjectivity of the described services to Value Added Tax.

The DGT's ruling

Repair services materially provided within the territory to which the tax applies to a recipient who is not an entrepreneur or professional are understood to be performed in said territory. Therefore, they are subject to VAT regardless of whether the recipient has their habitual domicile or residence outside the Community. The company must charge the tax at the general rate of 21 percent.

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