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V1042-18 25 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

VAT exemption for mediation in financial transactions applies when the mediator is an independent third party

A query was raised regarding whether commissions for mediation services in vehicle sales, paid by a dealership, are exempt from VAT. The DGT ruled that for mediation to qualify for exemption, the provider must be an independent third party that brings the parties together, rather than merely providing information or receiving requests.

The question raised

Exemption from Value Added Tax on said operations.

The DGT's ruling

The mediation exemption requires that the provider be a third party distinct from the buyer and the seller, whose function is to do what is necessary so that the parties enter into the contract without having a personal interest in its content. The mere supply of information or the simple receipt of requests is not considered mediation. Chain mediation is possible provided that each intermediary performs services specific to mediation and is not limited to material tasks.

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