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V0927-24 25 April 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

VAT liability for advisory services depends on the recipient's status and location

A taxpayer has requested clarification regarding the VAT liability of mentoring services provided to professionals and advisory services provided to private individuals. The DGT explains that the place of supply depends on whether the recipient is a taxable person or a private individual and their place of residence, noting the potential application of the effective use and enjoyment rule for services provided to individuals outside the European Union.

The question raised

Question raised: Liability and place of performance for Value Added Tax purposes regarding the advisory, mentoring, and training services provided by the applicant.

The DGT's ruling

Mentoring and training services for professionals are considered to be performed in the place where the recipient is established or has their residence. Consulting services to individuals are subject to VAT if the recipient is in national territory, but not if they reside in third States. However, if the service to an individual outside the Union is effectively used or exploited in Spain, the use and exploitation criterion of Article 70.Two of Law 37/1992 could apply.

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