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V2177-19 14 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación financiera

Financial brokerage services via software applications may be exempt from VAT

A company sought clarification on whether its financial brokerage, advertising, and data transfer services within an app were VAT-exempt. The DGT ruled that brokerage services may be exempt if they involve active customer acquisition and filtering, whereas advertising and data transfer services are not.

The question raised

VAT treatment of the described financial intermediation, advertising, and data transfer services.

The DGT's ruling

Financial mediation is exempt if the provider is an independent third party and their work goes beyond the mere provision of information, performing an activity of bringing the parties together. For online intermediation to be exempt, the client must be able to enter into the contract through the medium used itself. However, advertising services and the transfer of data are not financial in nature nor are they ancillary to the mediation, and are therefore subject to the tax.

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