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V3303-20 6 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Mediation in loans and insurance may be VAT exempt if the agent provides active advice, negotiation, or client acquisition

A credit institution has enquired whether the work of an agent marketing combined mortgage loans and insurance is exempt from VAT. The DGT has determined that the exemption depends on whether the agent performs active mediation or is limited to the mere provision of information.

The question raised

1. Whether the agent's activity in the mortgage loan marketing process is exempt from Value Added Tax.

The DGT's ruling

For the mediation in financial products to be exempt, the agent must be a third party performing functions of solicitation, advisory services, or active negotiation, and not a mere transmitter of information. In insurance, the exemption applies to client solicitation, advisory services, and pre-contractual work, but not to the simple supply of data or information without additional actions to assist in the conclusion of the contract. Mere administrative or back-office support does not benefit from the exemption.

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