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V1144-18 7 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Mediation in share sales is VAT exempt if the provider acts as an independent third party

A query was raised regarding whether assistance and negotiation services in share sales are exempt from VAT. The DGT ruled that mediation is exempt provided the provider is an independent third party who brings the parties together and participates actively in the negotiation, rather than merely providing information or advice.

The question raised

Liability and, where applicable, exemption from Value Added Tax.

The DGT's ruling

In order for the mediation in the transfer of shares to be exempt, the consultant must act as an independent third party who brings the parties together for the execution of a contract. The mere provision of information or the receipt of requests is not sufficient. The work must include identifying opportunities to operate and actively participating in the negotiation of the contract details. If the activity is limited to advisory services or administrative management, it shall be subject to tax.

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