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V2449-23 13 September 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

VAT liability for partner services depends on whether they act independently or under employment subordination

An employment promotion company has requested a ruling on whether services provided by its sole partner from abroad are subject to VAT. The DGT indicates that liability will depend on whether the relationship is one of professional independence or employment dependency, analysing the organisation of resources, remuneration, and responsibility.

The question raised

Liability for Value Added Tax on the services provided by the consulting entity.

The DGT's ruling

To determine whether a partner is a taxable person for VAT purposes, it must be analyzed whether they act with independence or subordination. The relationship is employment-based (not subject to VAT) if the professional is subject to the organizational criteria of the company, does not have consideration linked to results, and the company is liable to third parties. It is a professional activity (subject to VAT) if the partner organizes their own means, receives remuneration linked to results, and assumes responsibility towards third parties.

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