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V2757-18 19 October 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · holding mixta

A holding company may be considered a taxable person if it provides management services to its subsidiaries

The taxpayer asks whether it qualifies as a mixed holding company for VAT purposes when providing management and administration services to a subsidiary. The DGT rules that the mere holding of shares does not constitute an economic activity, but the provision of management services does allow for classification as a mixed holding company and a taxable person.

The question raised

Whether the consultant is considered a mixed holding company for Value Added Tax purposes.

The DGT's ruling

The mere acquisition and holding of shares does not constitute an economic activity nor does it grant the status of a taxable person for VAT purposes. However, if the holding company intervenes directly or indirectly in the management of the participated companies through the provision of services (administrative, financial, commercial, or technical), it carries out an economic activity. For these services to allow for the status of entrepreneur, they must utilize business or professional assets, and simple influence resulting from a high shareholding is not sufficient.

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