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V2467-14 23 September 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación financiera

Financial mediation by vehicle dealers may be VAT exempt if independence and activity requirements are met

A vehicle dealer sought clarification on whether its financial mediation activity between buyers and banking institutions was exempt from VAT. The DGT ruled that the activity is exempt provided the dealer acts as a genuine mediator that brings the parties together, rather than merely providing information or receiving applications.

The question raised

Whether said activity is exempt from Value Added Tax.

The DGT's ruling

For mediation to be exempt pursuant to Article 20.One.18) m) of Law 37/1992, the provider must be a third party with a distinct legal personality who brings the parties together for a future contract. The work must go beyond the mere provision of information or the receipt of requests, and it is necessary that the parties are aware of the existence and mission of the mediator. Independence is understood as the absence of an employment relationship, without affecting corporate affiliation.

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