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V1615-22 4 July 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · inversión del sujeto pasivo

Foundations must apply the reverse charge mechanism for services provided by companies in Italy and the UK

A research foundation has requested clarification regarding VAT liability for services contracted from companies based in Italy and the United Kingdom. The Directorate General for Taxes (DGT) has ruled that, as the foundation is considered a taxable person and is established in Spain, the reverse charge mechanism applies.

The question raised

Liability for Value Added Tax on the services consulted.

The DGT's ruling

The provision of services by foreign companies is subject to VAT as it occurs when the recipient is a taxable person established in Spain. The foundation must act as the taxable person through the reverse charge mechanism. In the case of the Italian company, the foundation is obliged to submit the summary statement of intra-Community transactions.

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