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V1267-16 29 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

VAT liability for services provided by a partner to their company depends on independence or subordination

A real estate agent and partner in a company sought clarification on whether their services to the entity were subject to VAT and the IAE (Business Activity Tax). The DGT ruled that VAT liability depends on whether the relationship is one of professional independence or employment dependency, analysing the organisation of resources, remuneration, and responsibility.

The question raised

1. VAT liability of the services provided by the applicant to the company of which they are a partner.

The DGT's ruling

To determine VAT liability, it must be analyzed on a case-by-case basis whether a relationship of subordination or independence exists. The activity shall not be subject to VAT if the partner acts under a regime of dependency, without the organization of their own means and under the organizational criteria of the company. Conversely, if the professional organizes their own means, assumes the economic risk, and is liable to third parties, the provision shall be subject to the tax. Regarding the IAE, liability will depend on whether the partner's activity involves the self-organization of means of production or human resources.

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