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V2311-19 5 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · sujeto pasivo

Arbitration services subject to VAT if performed independently and treated as employment income for Income Tax purposes

A self-employed hockey referee seeks clarification on whether their services are subject to VAT and how they are taxed for Income Tax purposes. The Directorate-General for Taxes (DGT) rules that VAT liability depends on whether the refereeing is performed independently or under an employment relationship, and that for Income Tax purposes, these services are classified as employment income.

The question raised

Taxation under VAT and Personal Income Tax.

The DGT's ruling

Regarding VAT, arbitration services are subject to tax if provided independently through the self-organization of means, but they are not subject if an administrative or employment relationship of dependency exists. Regarding Personal Income Tax (IRPF), this income is classified as employment income as the self-organization of own production means is not present, regardless of whether the professional is registered as self-employed.

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