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A query is made regarding the place of supply of advisory services for clients in the Canary Islands, Ceuta, or Melilla. The DGT determines that the treatment depends on whether the recipient is a business entity or an individual.
Question posed: Place of supply of the services subject to the query.
If the recipient is a business or professional established in the territory to which the tax applies, the service is deemed to be supplied in said territory. If the recipient is an individual established in the Canary Islands, Ceuta, or Melilla, the advisory service is deemed to be supplied in the territory to which the tax applies and is subject to VAT. Conversely, if the recipient is a business or professional established in the Canary Islands, Ceuta, or Melilla, the service would not be subject to the tax.
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