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V2424-17 28 September 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención de la operación

Services to international organisations may be VAT exempt if provided for in the headquarters agreement

A query was raised regarding whether text correction services provided to an international maritime organisation based in the United Kingdom are exempt from VAT. The DGT ruled that while the transaction is subject to tax in Spain, it may be exempt if the headquarters agreement stipulates such an exemption.

The question raised

Exemption of the transaction from Value Added Tax.

The DGT's ruling

Services provided to an international organization based in another Member State are subject to VAT in Spanish territory. However, the exemption of the transaction shall depend on the provisions of the applicable international conventions or headquarters agreements. To apply the direct exemption, the organization must present a certificate endorsed by the competent authorities of the destination State.

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