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V2406-24 25 November 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Graffiti workshop provided to a foreign professional is not subject to VAT in Spain

A Spanish company sought clarification on whether a graffiti workshop held in Madrid for a professional client from Israel was subject to VAT. The DGT ruled that, as the recipient is a professional established outside of Spain, the general rules of location apply and the service is not deemed to have been provided within Spanish territory.

The question raised

Subjectivity of services provided to Value Added Tax.

The DGT's ruling

The provision of services to a businessperson or professional who has their place of economic activity outside the territory to which the tax applies is understood to be carried out outside said territory, pursuant to Article 69.One.1º of the VAT Law. In this case, as the recipient is a professional established outside of Spain, the provision is not subject to Spanish VAT. The special rule of Article 70.One.7º for cultural or educational services only applies if the recipient is not a businessperson or professional acting as such.

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