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V1999-14 25 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación comercial

Commercial mediation services provided to a Swiss company are not subject to VAT in Spain

A Spanish company provides sales agency and promotion services to a Swiss cryopreservation firm. The DGT has ruled that, as the recipient is an entity located outside the scope of the tax, the transaction is not subject to VAT.

The question raised

Subjectivity of the operation to Value Added Tax in Spain.

The DGT's ruling

Commercial mediation services provided to a recipient not established in Spain are not considered to be performed in Spanish territory pursuant to Article 69.One.1º of Law 37/1992. The rule of effective use or exploitation under Article 70.Two is not applicable because the Swiss entity does not appear to carry out taxable operations in Spain. For said rule to apply, the service would have to be used by the recipient in the performance of operations within Spanish territory.

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