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V1761-25 30 September 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

The Spanish company must self-assess the VAT on services received from an Estonian provider through the reverse charge mechanism

A Spanish company with a 0% pro-rata ratio seeks clarification on the VAT applicability of consulting and mediation services received from an Estonian provider under the franchise regime. The DGT determines that, as the recipient is a taxable person based in Spain, the transaction is subject to Spanish VAT via the reverse charge mechanism.

The question raised

Question raised: Place of supply of services received by the taxpayer and their taxability. Applicability to the provision of services regarding the non-taxability of intra-Community acquisitions of goods provided for in Article 13.1.a) of Law 37/1992. In the event that the transaction is taxable, the method for including it in Form 303 (tax return-settlement).

The DGT's ruling

Services provided by a provider not established in Spain to a recipient who is a taxable person or a professional established in Spanish territory are considered to be performed in Spain. In this case, the inquiring company is the taxable person for the tax, being required to file the tax return and pay the VAT accrued. The Estonian provider's franchise scheme does not prevent the liability to tax in Spain, as there is no equivalent provision for services as there is for the supply of goods.

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