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V3486-16 22 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Financial mediation service fees may be VAT exempt if intermediation requirements are met

An entity inquired whether its financial intermediation activities, conducted alongside its dealers, were exempt from VAT. The DGT ruled that these services are exempt provided they act as an independent third party bringing the parties together for a future contract.

The question raised

Exemption of said operations from Value Added Tax.

The DGT's ruling

The mediation exemption requires that the provider be a third party distinct from the parties to the principal contract. Their function must go beyond the mere supply of information or the receipt of requests, performing activities to enable the parties to enter into the contract. In a chain mediation, each intermediary must perform services characteristic of mediation to maintain the exemption. If the intermediary is limited to material or information tasks, the provision shall be subject to tax.

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