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V3152-19 13 November 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Mediation in financial products is VAT exempt if it enables direct or indirect contracting

A company sought clarification on whether its services for acquiring financial product customers, including those provided by its Peruvian branch, were exempt from VAT. The DGT ruled that mediation activities are exempt if they facilitate contracting; however, the branch's services may fall outside the scope of the tax if they do not assume independent economic risk.

The question raised

1. Whether the provision of services by the consulting entity is subject to and exempt from the Tax. 2. Whether the services provided by the entity established in Peru are subject to and exempt from the Tax.

The DGT's ruling

Mediation in financial operations is exempt if the provider is a third party that brings the parties together and their work goes beyond the mere supply of information, allowing for direct or indirect contracting. For the work to constitute mediation, an active element must exist, such as advisory services, negotiation of terms, or facilitating contact to enable the conclusion of the contract. Regarding the branch, if it does not assume the economic risk of the activity, but rather the parent company does, it is not an independent taxable person and its services fall outside the scope of VAT.

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