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V1364-21 12 May 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación

Intermediation services provided to entities outside the EU may be subject to VAT if their effective use is in Spain

A consulting firm asks whether its intermediation services to an entity in Norway are subject to VAT. The DGT explains that, although the general rule places the transaction outside of Spain, the criterion of effective use and exploitation could apply if the service is used in Spanish territory.

The question raised

Question posed: Liability for Value Added Tax of the services provided by the consulting entity.

The DGT's ruling

Intermediation and assistance services may be subject to VAT through the rule of effective use and exploitation under Article 70.Two of Law 37/1992. This occurs when, even if the recipient is outside the Community, the service is effectively used or exploited in Spain. To determine this, it must be verified whether the operations related to the service are carried out in Spanish territory and whether there is a direct or indirect relationship between the service and said operations. The application of this criterion must be analyzed on a case-by-case basis as a matter of fact.

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