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V0914-22 28 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · territorio de aplicación

Movie age rating administrative services may be subject to VAT if effectively used or exploited in Spain

A Spanish company provides services to a UK company to process movie age ratings in Spain. The DGT is analysing whether these professional services, when provided to a third country entity outside the EU, are subject to VAT or if the rule of effective use and exploitation in Spanish territory applies.

The question raised

Taxation of the described services for the purposes of Value Added Tax.

The DGT's ruling

Although the provision to a recipient in a third country (United Kingdom) is not usually subject to VAT, professional advisory services may be subject to it if Article 70.Two of Law 37/1992 is applied. This occurs when the effective use or exploitation of the service takes place within the territory of application of the Tax. To determine this, it must be analyzed whether the service is related to operations carried out in Spain, which requires a case-by-case assessment of the facts.

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