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V3348-15 29 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Location of translation, staffing, and equipment rental services depends on effective use in Spain

An event services company enquired whether its provisions are located in Spain. The DGT indicates that if the recipient is a business outside Spain, the general rule is that the transaction is not located in Spain, unless the effective use clause applies.

The question raised

The consulting entity asks whether the aforementioned services must be located within the territory to which the tax applies.

The DGT's ruling

For translation services, the provision of personnel, and the leasing of movable property, if the recipient is a business entity located outside the territory, Article 70.Two of the VAT Law shall apply if their effective use or exploitation takes place in Spain. This requires that the service be used by the recipient in the performance of operations that they carry out or intend to carry out within the territory to which the tax applies. The application of this rule of effective use must be analyzed on a case-by-case basis.

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