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V2262-17 8 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción al impuesto

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

A consultancy firm has requested a ruling on whether professional services provided by its partners are subject to VAT. The DGT has responded that applicability depends on a case-by-case analysis of the partner's independence versus employment subordination.

The question raised

Liability for Value Added Tax on services performed by partners.

The DGT's ruling

To determine the liability for VAT, it must be analyzed whether the partner acts independently or under a regime of dependency. The relationship is employment-based (not subject to VAT) if the professional is subject to the organizational criteria of the company, does not receive remuneration significantly linked to results, and the company is liable towards third parties. Conversely, if the partner organizes their own means, receives remuneration linked to the success of the activity, and assumes responsibility towards third parties, the provision shall be subject to the tax.

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