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V0824-16 2 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción pasiva

VAT and IAE liability for services provided by a shareholder to their company depends on independence or subordination

An administrative manager and shareholder of a company inquired whether her services to said company were subject to VAT and if she was required to register for the IAE. The DGT ruled that the classification depends on a case-by-case analysis of whether the relationship is one of independence or dependency.

The question raised

Liability of the services provided by the applicant to the company of which she is a partner. Obligation to be registered for the Tax on Economic Activities.

The DGT's ruling

Regarding VAT, liability depends on whether the partner acts independently or under a regime of labor dependency, analyzing the organization of own means, remuneration linked to results, and liability towards third parties. If the partner is subject to the organizational criteria of the company, does not receive remuneration linked to results, and the company is liable towards third parties, the services are not subject to VAT. Regarding IAE, liability is determined by whether the activity involves the self-directed organization of means of production or human resources.

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