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V2479-22 1 December 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · dao

VAT must be applied in Spain if the client is a DAO without legal personality or a Tax ID

A natural person acting as a Project Manager for a DAO has enquired which IAE heading to use and how to account for VAT. The DGT indicates that, as the DAO lacks legal personality and a Tax ID, the recipient is not considered a taxable person, meaning the service is subject to 21% VAT in Spain.

The question raised

1. Heading in the Tax on Economic Activities in which the taxpayer must register to carry out the activity.

The DGT's ruling

Regarding the IAE, the consultant may use group 763 (programmers) or heading 843.9 (other technical services) depending on the nature of their tasks. Regarding VAT, if the client is a DAO without legal personality or a specific location, the general rules of Article 69.One of Law 37/1992 shall apply. This implies that, as they cannot be considered an entrepreneur or professional, the service is deemed to be performed in Spanish territory. Therefore, an invoice must be issued applying the general rate of 21%.

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