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V1239-19 30 May 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio único

IVA should not be charged for organising a sporting event for a non-EU entity without a Spanish establishment

A company asked whether organising an international sporting event for a Swiss entity without a presence in Spain was subject to VAT. The DGT concludes that the activity constitutes a one-off organisational service and, as the client has no establishment or seat in Spain, the operation is not carried out within Spanish territory.

The question raised

Treatment of operations for Value Added Tax purposes

The DGT's ruling

The organization of a sporting event is a single complex service composed of a plurality of closely linked elements. As the recipient is an entrepreneur without a registered office, permanent establishment, or domicile in Spain, the supply is not considered to have been made within the territory to which the tax applies. Therefore, the applicant must not charge VAT. However, the company may deduct the tax paid in Spain for the performance of said activity.

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