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V2916-14 30 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · prestación de servicios

Sports agent services are not subject to Spanish VAT and income is taxed as employment income

A sports agent requested a ruling on the taxation of her services and expense reimbursements provided to a UK-based company. The DGT determined that the service is not subject to Spanish VAT as it constitutes an intra-Community transaction and that the income is classified as employment income.

The question raised

Inquiry regarding taxation under VAT and Personal Income Tax (IRPF):

The DGT's ruling

The police station service is a provision of services not subject to Spanish VAT as it is not located in national territory, since the recipient is an entrepreneur from the United Kingdom. The remuneration received constitutes income from employment as there is no organization of own means of production. Expense reimbursements are only non-taxable if the organizer directly provides the means of transport; if the expense is merely reimbursed without proof that it strictly compensates for travel, it is taxed as income from employment. The exemption for work performed abroad does not apply as this requires an employment or statutory relationship.

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