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V1095-24 22 May 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · administración concursal

Insolvency administration services provided to private individuals residing in the Canary Islands are subject to VAT

A commercial entity has requested clarification on whether the provision of insolvency administration services to non-business natural persons residing in the Canary Islands is subject to VAT. The Directorate General for Taxes (DGT) has ruled that the transaction is subject to the tax and must be taxed at the standard rate.

The question raised

Whether the provision of said services would be subject to Value Added Tax.

The DGT's ruling

The provision of insolvency administration services is considered a service subject to VAT. As the recipient is a non-business individual resident in the Canary Islands, the service is deemed to be rendered within the territory to which the tax applies. Therefore, the transaction is subject to VAT at the standard rate.

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