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V3134-15 16 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación en nombre y por cuenta ajena

Mediation services to clients outside the Community may be subject to VAT if their effective use is in Spain

It is inquired whether mediation services provided by a Spanish entity to clients abroad are subject to VAT. The DGT explains that, although the general rule places the transaction outside of Spain based on the client's headquarters, the rule of effective use could apply if the service is used to carry out operations in Spanish territory.

The question raised

Question posed: It is questioned whether or not the tax applies in the event that the client of the mediation service is established outside the territory of the Community.

The DGT's ruling

The location of mediation services rendered on behalf of and for the account of others is determined by the headquarters of the recipient (entrepreneur or professional). If the recipient is in a third country, the transaction would not be subject to the tax, unless the rule of effective use under Article 70.Two is applied. This rule requires that the service be used by the non-established recipient in the performance of operations carried out within the territory to which the tax applies.

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