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V2603-18 25 September 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Services provided to an entity without foreign VAT identification are subject to Spanish VAT

A professional asks whether VAT should be charged when providing services to a non-profit entity in the United Kingdom that is not identified for VAT purposes. The DGT rules that, as the entity is not a VAT-registered business or professional, the transaction is deemed to take place in Spain.

The question raised

Whether the procedure adopted by the taxpayer regarding the charging of the tax is correct.

The DGT's ruling

If the recipient of the services does not have an individual identification number for VAT purposes in their Member State, they do not hold the status of an entrepreneur or professional acting as such. In this case, pursuant to Article 69.One.2º of Law 37/1992, the supply is deemed to be made within the territory where the tax applies. Therefore, the provider must charge the VAT amount to the recipient, who is obliged to bear it.

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