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V1728-17 4 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

Services provided by members to worker cooperatives are not subject to VAT if they constitute dependent employment relationships

A worker cooperative engaged in street vending has requested clarification regarding the taxable person for operations carried out by its self-employed members. The Directorate General for Taxes (DGT) has ruled that services provided by members to the cooperative are not subject to VAT, provided they occur within the scope of dependent employment relationships.

The question raised

Determination of the taxable person in said operations.

The DGT's ruling

Services provided to associated labor cooperatives by their members are not subject to VAT pursuant to Article 7.6 of Law 37/1992. However, this exemption from taxation only applies if the services are provided within the scope of dependent employment relationships. All other internal relationships between the cooperative and its members remain subject to the tax.

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