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V3721-15 25 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · representación procesal

Legal representative services for foreign clients may be exempt from Spanish tax if no activity is carried out in the territory

A query was raised regarding whether legal representation services provided by a Spanish professional to foreign clients are subject to VAT in Spain. The DGT has determined that taxability depends on whether the recipient is a business or a professional, and whether the service is effectively used to carry out activities within Spain.

The question raised

Question raised: Treatment for Value Added Tax purposes.

The DGT's ruling

Legal representative services provided by a professional in the Peninsula are located in Spain if the recipient is a business or professional established in the territory and the service is intended for their activity. They shall not be subject to tax if the recipient is a non-business person domiciled outside the Community. To apply the effective use clause (art. 70.Two), the service must be linked to operations that the recipient performs or intends to perform in Spain.

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What is published here, applied to a company or a specific case. The first meeting is free.

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