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V1921-19 22 July 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · sujeción al impuesto

Services provided to a UK company are exempt from Spanish VAT

A telecommunications engineer enquires about VAT liability for services rendered to a UK company and his IRPF obligations. The DGT determines that the transaction is exempt from Spanish VAT and that the professional must make IRPF payments in instalments due to the absence of prior withholdings.

The question raised

For VAT purposes, whether the transactions are subject to or exempt from this tax, as well as other matters regarding its settlement.

The DGT's ruling

Services provided to a United Kingdom company are not located within the territory to which VAT applies, and therefore are not subject to the tax. The recipient shall be the taxable person through the reverse charge mechanism. Regarding Personal Income Tax (IRPF), the professional is obliged to make installment payments if, in the previous year, withholdings were not applied to at least 70% of the activity's income.

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