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V0867-16 9 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Brokerage fees for the placement of prepaid cards may be exempt from VAT

An entity inquired whether the commissions received for brokering the sale of prepaid wallet cards were exempt from VAT. The DGT ruled that such activity constitutes mediation in payment instrument operations, meaning the exemption is applicable.

The question raised

Exemption of operations.

The DGT's ruling

Intermediation in the placement of prepaid cards is subject to and exempt from VAT provided that the function of the intermediary is to bring the parties together for the conclusion of a contract and such function is known to the recipient. Mediation is understood as the existence of a third party who brings the parties together, and the mere supply of information or the receipt of requests is not sufficient. As prepaid cards are means of payment, the commissions received for this mediation service are exempt operations.

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