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V1994-18 3 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

No VAT due on Belgian company invoices; IRPF retention required for Spanish activities

A freelance clown working for a Belgian circus asks whether VAT and IRPF retention should apply to his invoices. The DGT confirms that the operations are not subject to Spanish VAT and that IRPF retention must be applied when performances take place in Spain.

The question raised

Whether VAT must be charged on invoices issued to the Belgian company, along with the corresponding Personal Income Tax (IRPF) withholding.

The DGT's ruling

The provision of services to the Belgian company is not subject to Spanish VAT as the service is provided to a professional recipient established in Belgium without a permanent establishment in Spain. Regarding Personal Income Tax (IRPF), income from activities in Spain is subject to withholding by the Belgian company if it has a permanent establishment in Spain, or as provided in Article 76.1.d) of the Personal Income Tax Law (LIRPF). For activities in other countries, the regulations of each State and the corresponding double taxation treaties shall apply.

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