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V2844-17 3 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación financiera

Financial intermediation is taxable but exempt from VAT if the service goes beyond the mere provision of information

The taxpayer asks whether their activity of intermediating in obtaining loans is exempt from VAT. The DGT rules that it will be exempt provided that the mediation work is genuine and not limited to providing information or receiving applications.

The question raised

1.- Whether said activity is exempt from Value Added Tax.

The DGT's ruling

The financial intermediation activity is subject to but exempt from VAT pursuant to Article 20.One.18) m) of Law 37/1992, provided that the work goes beyond the mere provision of information and the simple receipt of applications. For mediation to exist, the mediator must be an independent third party who brings the parties together for the future conclusion of a contract, with their role being known to both. Likewise, the entity is obliged to issue an invoice for these exempt services.

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