Back to index
V1412-22 16 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Provision of advisory services to a third party may be subject to VAT if effective use or exploitation occurs in Spain

A taxpayer has enquired whether advisory services provided to a company in a non-EU country should be invoiced with VAT. The DGT explains that, although the general rule is non-taxability, the service could be subject to tax if its effective use or exploitation takes place within Spanish territory.

The question raised

To determine the taxation of the transaction for Value Added Tax purposes and, specifically, whether the taxpayer's company must invoice the entity located in a third country for said service.

The DGT's ruling

Advisory services provided to an entrepreneur of a third country are not subject to VAT if their headquarters are not located in Spain. However, pursuant to Article 70.Two of Law 37/1992, they shall be deemed to be provided in Spain if their effective use or exploitation takes place within this territory. To determine this, it must be analyzed whether the operations related to the service are located in Spain and whether there is a direct or indirect relationship with the provision.

Book your free first meeting