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V3185-21 22 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · lugar de realización

Engineering services provided to an entity in Panama are not subject to VAT, unless effectively used or exploited in Spain

An engineering firm sought clarification on whether its services provided to an entity in Panama, and the services it would receive from third parties in that country, were subject to VAT. The DGT ruled that the provision of services to the Panamanian entity is not subject to the tax; however, services received from third parties may be subject to it if they are deemed to be performed in Spain under the rule of effective use and exploitation.

The question raised

Cuestión planteada Si los referidos servicios que va a prestar y a recibir la entidad consultante se encontrarían sujetos al Impuesto sobre el Valor Añadido. En caso afirmativo, facturación de los mismos.

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