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V1460-17 7 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Advertising or electronic services for customer acquisition are not exempt from VAT

An insurance agency inquired whether services provided by an Irish entity to acquire customers via the web are exempt as insurance mediation. The DGT ruled that these services appear to be advertising or electronic services, which are subject to VAT and do not qualify for the exemption.

The question raised

Application to services received from the Irish entity of the exemption contained in Article 20.One.16º regarding mediation for customer acquisition.

The DGT's ruling

The mediation exemption requires that the service consists of bringing the parties together for the conclusion of insurance contracts. Support or 'back office' services are not exempt. Promotion services intended to increase web visibility are classified as advertising or services provided by electronic means, which are subject to and not exempt from VAT.

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