Back to index
V4680-16 4 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio único de organización

Output VAT may be rectified if the client is proven to be a business or professional

A company organised a trade fair for a client located outside the Community and applied VAT, unaware of their status as a business. The DGT indicates that if it is proven that the client acts as a business, the transaction is not subject to the tax and rectification is appropriate.

The question raised

Whether it is appropriate to rectify charged amounts.

The DGT's ruling

The location of the trade fair organization service depends on the status of the recipient. If the client is a businessperson or professional acting as such, the service is not located in Spain and is not subject to VAT. If the recipient is not a businessperson or professional, the service is located in Spain as it is materially provided within the territory and is subject to the general rate of 21%. In the event of an error, the taxable person may rectify the amounts through the self-assessment rectification procedure or by regularizing them in subsequent returns.

Book your free first meeting