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V2726-20 7 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación comercial

Services provided by domestic suppliers to an intermediary company are subject to VAT

An international commercial brokerage firm has enquired whether services provided by its suppliers in Spain are subject to VAT and if it may apply for monthly VAT refunds. The DGT has ruled that these services are subject to VAT and that the management of monthly refunds falls under the jurisdiction of the State Tax Administration Agency.

The question raised

Whether the services provided by said suppliers established in the territory where the Tax applies to the applicant are subject to Value Added Tax. Authorization to adopt the monthly tax refund regime.

The DGT's ruling

The applicant holds the status of entrepreneur and its activities are subject to VAT. The services provided to the applicant by suppliers established in the territory where the tax applies are considered to be performed in said territory, as no special rules of location apply, and are therefore subject to VAT. For the monthly refund application, the management competence lies with the State Tax Administration Agency.

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