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V2488-21 30 September 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación

Brokerage services for US or Canadian goods destined for Cuba are not subject to VAT

A company has requested clarification on whether its brokerage services, provided on behalf of individuals purchasing goods in the US or Canada for shipment to Cuba, are subject to VAT. The Directorate General for Taxes (DGT) ruled that they are not, as the brokerage operation is not located in Spain since the sale of goods does not constitute an import.

The question raised

1. Value Added Tax treatment of the described mediation service.

The DGT's ruling

Mediation services rendered on behalf of and for the account of a third party, where the recipient is an individual, are not considered to be performed within the taxable territory if the transactions being mediated are not deemed to be performed within said territory. In this instance, the sale of goods from the USA or Canada destined for Cuba does not constitute an import under the law, therefore the mediation is not located in Spain.

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