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V1682-21 31 May 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Consultancy services provided to a company based in Melilla are not subject to Spanish VAT

A consultancy firm from mainland Spain asks whether its services to a gambling company based in Melilla are subject to Spanish VAT or to IPSI. The DGT responds that, as the recipient is a business based in Melilla, the provision is not considered to have taken place within the territory of application of VAT.

The question raised

Question posed: Whether the advisory operation to the company based in Melilla is subject to the territory of application of Spanish VAT, the type of VAT to be applied, and in the event that it is not subject, whether it would be subject to IPSI and what the applicable rate would be.

The DGT's ruling

The provision of services is understood to be carried out within the territory of application of the Tax when the recipient is a business or professional who has the headquarters of their economic activity in said territory. Given that the recipient of the consultancy services is based in the Autonomous City of Melilla, the transaction is not subject to Spanish VAT.

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