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V3417-15 6 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto pasivo

VAT applicability to services provided by partners to a company depends on independence or subordination

A professional law firm has requested clarification on whether services provided by its partners are subject to VAT. The DGT has ruled that VAT applicability depends on whether a relationship of employment subordination exists or if the partner acts independently.

The question raised

Liability of the services provided by partners to the consulting company.

The DGT's ruling

To determine VAT liability, it must be analyzed on a case-by-case basis whether the partner acts independently or under subordination. The relationship is employment-based (not subject to VAT) if the partner submits to the organizational criteria of the company, does not receive remuneration linked to their results, and the company is liable to third parties. Conversely, if the partner organizes their own means, assumes the economic risk, and is liable to third parties, the activity is subject to the tax.

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