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V3319-17 28 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asesoramiento financiero

Commissions for company sales in financial advisory contracts are subject to VAT

An entity sought clarification on whether commissions charged for executing a company sale constituted a separate transaction or an ancillary part of financial advisory services. The DGT has determined that, as it is a single, complex contract, it constitutes a single provision of financial advisory services subject to VAT.

The question raised

Liability for Value Added Tax on the commissions charged by the consultant for advisory services.

The DGT's ruling

Advisory services, strategy design, analysis, and sale execution constitute a single supply of financial advisory services when they are interrelated within a global contract. The execution of the sale is a consequence of the preceding actions and does not constitute an independent purpose for the client. Therefore, the entirety of the service, including the success fee for the sale, is subject to and not exempt from VAT.

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