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V3187-21 23 December 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · uso y explotación efectiva

Marketing services provided to a UK company may be subject to VAT if used in Spain

A Spanish company provides marketing and sales support services to a client in the United Kingdom. The DGT examines whether these services are subject to VAT in Spain due to their effective use within national territory and whether the British client can recover the tax incurred.

The question raised

Whether the services to be provided by the applicant to its client would be subject to Value Added Tax. If so, whether the client would be entitled to a refund of the tax amounts incurred by said provision of services.

The DGT's ruling

Marketing and auxiliary services may be subject to VAT in Spain if they are effectively used or exploited within Spanish territory, even if the recipient is an entity in the United Kingdom. To determine taxability, it must be verified whether the operations related to the service are carried out in Spain and whether there is a direct or indirect relationship with the provision. In the event of partial use, the rule may be applied proportionally. The British client may request a refund of the VAT incurred if reciprocity exists, complying with the requirements of Article 119 bis of Law 37/1992.

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