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V2505-20 22 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación

VAT liability for intermediation services depends on whether effective use or exploitation occurs in Spain

A company sought clarification on whether its intermediation services, performed on behalf of a client outside the EU, were subject to VAT. The DGT explains that while the general rules of location may not apply, the criterion of effective use and exploitation within Spanish territory could be applicable.

The question raised

Whether the intermediation services to be provided by the applicant would be subject to Value Added Tax.

The DGT's ruling

Mediation services rendered on behalf of third parties to entrepreneurs located outside the Community may be subject to VAT if Article 70.Two of Law 37/1992 is applied. To this end, the service must be effectively used or exploited in Spain in the performance of transactions subject to the tax. This use may be direct or indirect, and the initial or final recipient of the service must perform such transactions in Spanish territory.

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