Back to index
V1529-23 5 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

The provision of professional services to a foreign entrepreneur may not be subject to VAT if their status is proven

A Luxembourgish company inquired whether the provision of professional services by a Spanish entity was subject to VAT. The DGT explains that if the recipient is an entrepreneur or professional and their status is proven, the transaction is not subject to tax in Spain.

The question raised

Question raised: Taxation of the described operation for Value Added Tax purposes.

The DGT's ruling

If the recipient is an entrepreneur or professional acting as such and does not have a registered office or permanent establishment in Spain, the provision of services is not subject to VAT pursuant to Article 69.One.1º of Law 37/1992. If the provider did not have the information to prove such status at the time of invoicing, the transaction could be subject to tax. In the event that the status of entrepreneur is proven subsequently, the provider must rectify the charged amounts through corrective invoices in accordance with Article 89 of Law 37/1992.

Email
Contact