Skip to content
Back to index
V2180-19 14 August 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Financial intermediation may be VAT exempt if recruitment activities provide added value

A company sought clarification on whether its intermediation services for credit card contracting at physical stands were VAT exempt. The DGT explains that for the activity to be classified as exempt mediation, it must go beyond the mere provision of information or advertising.

The question raised

Whether said activity is exempt from Value Added Tax.

The DGT's ruling

Financial mediation is exempt if the provider is an independent third party performing an active role in bringing the parties together. The mere provision of information, the receipt of applications, or advertising is not considered mediation. For the exemption to apply, the activity must include an additional element such as advisory services, the negotiation of terms, or a connection process involving an analysis or filtering of clients that adds value to the financial institution.

Book your free first meeting