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V1726-22 20 July 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

Branch services to parent company ineligible for VAT exemption due to lack of independence

A banking entity based in Spain with a branch in another Member State sought clarification on whether financial mediation services between them were subject to or exempt from VAT. The DGT ruled that, as the branch lacks its own legal personality, it does not operate with the independence required for the exemption.

The question raised

Question raised 1. Whether the transactions between the head office and the branch are subject to Value Added Tax.

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