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V2229-17 5 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

VAT applicability to services provided by partners depends on independence or subordination

A partner in a tax advisory firm inquires whether their services are subject to VAT. The DGT rules that applicability depends on a case-by-case analysis of the independence of the activity.

The question raised

Subjectivity to Value Added Tax of the services performed by partners.

The DGT's ruling

To determine whether a partner's services are subject to VAT, it must be analyzed whether a relationship of dependency or subordination exists. Subjectivity requires that the partner provides their own means and is not subject to the organizational criteria of the company. It must be assessed whether the partner assumes economic risk through remuneration linked to results and whether they are liable to third parties. If the partner uses the company's primary means and lacks autonomy, the relationship is classified as employment and is not subject to the tax.

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