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V2393-16 1 June 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Travel agency mediation services for a Canary Islands entrepreneur are not subject to VAT, unless effective use occurs in mainland Spain

A travel agency has requested a ruling on whether its mediation services provided to an entrepreneur in the Canary Islands are subject to VAT. The DGT has ruled that, as a general rule, these services are not subject to VAT because the recipient is located outside the tax territory, unless the criteria for effective use or exploitation within Spain are met.

The question raised

Taxability of the mediation operation.

The DGT's ruling

Mediation services provided to a taxable person not established in the territory of application of the tax and without a permanent establishment are not subject to VAT. However, pursuant to Article 70.Two of Law 37/1992, they could be subject to tax if the service is effectively used or exploited within the state territory. For this purpose, the recipient must use the service in the performance of transactions subject to tax in Spain.

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