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V1906-24 21 August 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · agente comercial

Agent commercial acting on behalf of Swiss client does not charge VAT but can deduct VAT paid

A Spanish resident commercial agent providing mediation services to a Swiss entrepreneur not established in the VAT territory does not charge VAT, as the service is located outside Spain under article 69.1 of Law 37/1992. Despite not charging VAT, the agent retains the full right to deduct VAT paid on its activities, as that right would have arisen if the service had been provided within Spain.

The question raised

Whether the issuance of invoices is correct and whether the Value Added Tax incurred may be deducted.

The DGT's ruling

The DGT distinguishes between acting in one's own name (double delivery of goods) and acting on behalf of another (provision of commission services). Based on the premise that the consultant acts on behalf of another, the mediation service is destined for the Swiss entrepreneur, who is not established in the territory of application of the tax, therefore the provision is not subject to Spanish VAT (Art. 69.One.1 Law 37/1992). Pursuant to Article 94.One.2 of the same law, operations carried out outside the territory that would generate a right to deduction if they had been carried out within the territory do not limit said right, therefore the agent may fully deduct the VAT incurred.

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