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V1838-23 26 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · territorio de aplicación del impuesto

Services provided to court agents in the Canary Islands, Ceuta or Melilla are not subject to VAT

A professional association of court agents (procuradores) has requested a ruling on whether charging a variable fee to non-member agents operating within its jurisdiction is subject to VAT. The Directorate General for Taxes (DGT) has determined that, as the recipients are located in the Canary Islands, Ceuta or Melilla, the services are not considered to have been performed within the tax territory.

The question raised

Whether the collection of said fee from procurators established in the Canary Islands, Ceuta, or Melilla would be subject to Value Added Tax.

The DGT's ruling

The provision of services to procurators established in the Canary Islands, Ceuta, or Melilla is not subject to VAT as it is not considered to be carried out within the territory to which the tax applies. Regarding the exemption for professional associations, this only applies to services in the collective interest of their members through fees established in their statutes, excluding services intended to satisfy private interests or benefits provided to non-member third parties.

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