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V2015-24 23 September 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Sporadic engineering services subject to VAT if there is intent to engage in the market

A retiree inquires whether their sporadic technical engineering services are subject to VAT. The DGT rules that they will be subject to the tax if the individual acts as a businessperson or professional with the intention of participating in the production of goods or services.

The question raised

For the purposes of Value Added Tax, the taxation of said works is questioned.

The DGT's ruling

The frequency or regularity of the provision of services does not determine the status of entrepreneur or professional, but rather the organization of production means with the intent to intervene in the market. An activity is not considered business activity if the operation is occasional, isolated, and without intention of continuity. If such intention of intervention exists, the provision of engineering services shall be subject to VAT and the taxable person must comply with the formal obligations of the tax.

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