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V4121-15 21 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación financiera

Payment intermediation services via virtual POS terminals are exempt from VAT

A company sought clarification on whether its financial intermediation activity in sales via virtual POS terminals was exempt from VAT. The DGT ruled that, as the entity acts as a responsible party in the payment chain and assumes non-payment risks, its role constitutes payment intermediation and is therefore exempt.

The question raised

Exemption from Value Added Tax on the operation.

The DGT's ruling

For exempt mediation or negotiation to exist, an independent third party must intervene to bring the parties together for a future contract without having a personal interest in its content. The mere provision of information or the receipt of requests does not constitute mediation. In the specific case, the activity of managing payments through virtual POS, acting as the responsible party in the payment chain regarding potential non-payments or refunds, qualifies as exempt payment intermediation.

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