Skip to content
Back to index
V1821-14 9 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Mediation services for a US entity not subject to VAT

A Spanish company asks whether its commercial mediation services for a US entity are subject to VAT. The DGT determines that, as the recipient has no establishment or seat in Spain, the services are not located within the national territory and the effective use rule does not apply.

The question raised

Liability within the territorial scope of the Tax for the transaction.

The DGT's ruling

Mediation services provided to a taxable person not established in Spain and without a permanent establishment are not considered to be performed within the territorial scope of the tax. Article 70.Two of Law 37/1992 is not applicable because the recipient does not carry out transactions subject to VAT in Spain through the use of said service. For the effective use rule to apply, the service must be used by the recipient in the performance of transactions within the national territory.

Book your free first meeting