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V2341-18 20 August 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Services provided to a US entity are not subject to VAT if the recipient has no registered office or domicile in Spain

An individual asks whether student assistance services provided to a US company are subject to VAT. The DGT determines that they are not subject to the tax because the recipient has no registered office, permanent establishment, or domicile in Spanish territory.

The question raised

Subjectivity of the services subject to consultation to Value Added Tax.

The DGT's ruling

Services provided by a businessperson or professional to a US entity are not subject to VAT when the recipient is not located in the territory to which the tax applies. For the provision to be subject to tax, the recipient must be a businessperson or professional with a registered office, permanent establishment, or domicile in Spain acting as such.

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