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V2909-18 14 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación única

Vehicle test event organisation constitutes a single supply, with location determined by the recipient's status

A company organises vehicle presentation events by subcontracting various services and invoices them at a single price. The DGT has ruled that these services constitute a single supply, applying location rules based on whether the client is a taxable person or not.

The question raised

Liability for Value Added Tax on said services, invoiced at a single price to its clients, who are taxable persons established in Member States.

The DGT's ruling

The organization of business events is considered a single service composed of closely linked elements that form an inseparable economic provision. If the recipient is a taxable person established outside of Spain, the transaction is not located in Spanish territory and the reverse charge mechanism applies. If the recipient is not a taxable person, the service is deemed to be rendered in Spain if it is materially provided within this territory.

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