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V1549-14 12 June 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

Legal services for non-resident heirs are subject to VAT if effectively used in Spain

A lawyer provides legal advisory services to US individuals regarding an inheritance involving funds in a Spanish bank. The DGT has ruled that these services are subject to VAT because their effective use or exploitation takes place within Spanish territory.

The question raised

Question raised - Taxability of services.

The DGT's ruling

Legal services provided to recipients who are not entrepreneurs or professionals and who reside outside the Community are generally not considered to be performed in Spain. However, pursuant to Article 70.2 of the VAT Law, they are considered to be provided in Spanish territory when their effective use or exploitation takes place in said territory. In this case, as they are services for filing Inheritance Tax in Spain, they are subject to the tax.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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