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V2680-21 5 November 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación en nombre ajeno

Mediation services to non-EU entities may be subject to VAT if their effective use is in Spain

A mediator has requested clarification regarding the VAT liability of services provided to clients in the United Kingdom and Israel. The DGT clarifies that, following Brexit, the United Kingdom is considered a third country and that VAT liability will depend on the location of the recipient or the effective use and enjoyment of the service in Spain.

The question raised

Taxability of operations subject to Value Added Tax.

The DGT's ruling

Mediation services provided on behalf of third parties to entities without a registered office in Spain are not subject to VAT due to place of supply rules. However, pursuant to Article 70.Two of Law 37/1992, they shall be subject to VAT if their effective use or exploitation takes place in Spanish territory. This application requires a case-by-case analysis to determine whether a link exists between the service and the operations carried out in Spain.

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