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V2186-23 26 July 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · actividad empresarial o profesional

Financial advice provided by an individual is subject to 21% VAT

An employee seeks clarification on whether their advisory services to an association are subject to VAT. The DGT rules that the activity is taxable if there is an organisation of means to intervene in the market, regardless of how frequently it is performed.

The question raised

To determine the implications within the scope of Value Added Tax, and specifically regarding invoicing, of the provision of the aforementioned service.

The DGT's ruling

The provision of financial advisory services is subject to VAT at the general rate of 21% when carried out in the course of a business or professional activity. The status of entrepreneur or professional depends on the organization of means of production to intervene in the market, even if the activity is occasional. An exemption could exist if it concerns private lessons on subjects within study plans or teaching services provided by authorized entities.

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