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V3897-16 15 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Administrator's remuneration deemed as income from work; VAT liability depends on independence

A partner and administrator asks how their services rendered to their own company are taxed under IRPF and VAT. The tax authority determines that administrator's salaries are income from work, and VAT liability for professional services depends on whether the partner uses their own resources and assumes economic risk.

The question raised

The taxpayer inquires about the taxation applicable to the services provided to the company regarding Personal Income Tax (IRPF) and VAT.

The DGT's ruling

In Personal Income Tax (IRPF), remuneration for director functions constitutes income from employment; if the partner provides professional services and is registered under the self-employed regime, it may constitute income from economic activity. Regarding VAT, liability depends on whether independence or subordination exists, analyzing whether the partner organizes their own resources, assumes economic risk, and possesses organizational autonomy. If the partner uses the company's assets and is subject to its criteria, the relationship is employment-based and is not subject to VAT.

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