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V0861-16 9 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Currency exchange mediation is VAT exempt if the mediator brings the parties together

A foreign exchange broker has enquired whether its financial advisory services are exempt from VAT. The DGT has ruled that mediation in currency exchange is exempt provided the mediator is an independent third party that brings the parties together, and their role is not limited to the mere provision of information or advice.

The question raised

Whether said activity is exempt from Value Added Tax.

The DGT's ruling

Mediation in foreign exchange operations is exempt from VAT if the mediator is an independent third party whose function is to bring the buyer and the seller together. For mediation to exist, the work cannot be limited to the mere provision of information, management, or advice in the purchase and sale of foreign currency. The fact that the parties do not conclude the contract following the mediation does not prevent the service from being considered performed.

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