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V2492-19 17 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · localización de servicios

Location of exhibition stand services depends on the recipient's status and the nature of the stand

A company has requested clarification regarding VAT liability for the design and assembly of exhibition stands, as well as the purchase of materials for shipment to third countries. The DGT clarifies that the location of exhibition stand services is governed by the general rule for services based on the recipient and examines whether they may be classified as advertising or ancillary services.

The question raised

Liability and, where applicable, exemption from Value Added Tax regarding the operations subject to consultation relating to stands, as well as regarding the operations carried out on behalf of their Spanish clients relating to the purchase of materials in Spain that are sent to countries not belonging to the European Union.

The DGT's ruling

Stand services are located pursuant to Article 69 of Law 37/1992: they are subject to tax if the recipient is an entrepreneur established in Spain, and are not subject if the entrepreneur is not in Spanish territory. If the stand is customized for the exhibitor, it may constitute advertising; if it follows uniform models provided by the organizer, it may be ancillary to the trade fair. Regarding the purchase of materials for shipment to third countries, if the inquirer acts in their own name, the supply of goods is exempt if the export requirements are met.

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