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V3619-15 19 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación en nombre ajeno

Services rendered on behalf of another are not located in Spain if the manufacturer carries out no VAT-taxable operations in Spanish territory

A query was raised regarding whether textile brokerage services provided by an agent to a Chinese manufacturer for a Spanish multinational should be located according to general rules or the effective use rules. The DGT determined that, as the Chinese manufacturer does not carry out VAT-taxable operations in Spain, the effective use rule cannot be applied, and the service falls outside the scope of the tax.

The question raised

Question raised: It is asked whether mediation services must be located in accordance with Article 69 of Law 37/1992 or with Article 70.Two of the same Law.

The DGT's ruling

To apply Article 70.Two of Law 37/1992, the service must be initially located outside the Community by means of Article 69 and there must be an effective use or exploitation in Spain of the related operations. In this case, as the Chinese manufacturer does not carry out VAT-taxable operations in Spanish territory pursuant to Article 68.Two, the necessary link requirement to apply the effective use rule is not met. Therefore, the mediation is not subject to VAT in Spain.

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