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V3226-17 15 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación financiera

Financial intermediation by independent agents is VAT exempt if their role is mediation

A vehicle marketing company enquired whether financial intermediation carried out by independent agents to obtain loans is exempt from VAT. The DGT ruled that if the agents' role constitutes genuine mediation rather than mere subcontracting, the activity is exempt.

The question raised

Whether the activity carried out by independent agents is exempt from Value Added Tax as financial intermediation.

The DGT's ruling

For mediation to be exempt, there must be a third party who brings the parties together for the future conclusion of a contract, without having a personal interest in its content. This task must go beyond the mere provision of information or the receipt of requests. If independent agents operate in an identical manner to dealers, performing an approach task known to the parties, their provision is subject to and exempt from VAT.

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