Intermediaries may apply VAT exemption on export services

The nature of commercial brokerage services generates recurring doubts regarding their treatment under Value Added Tax (VAT), especially when operations involve international markets. The Dirección General de Tributos (DGT) has specified the limits of the exemption applicable in these scenarios.

What the DGT has resolved

The ruling analyzes whether brokerage services provided by commercial agents are subject to VAT when the service recipient is based in Spain. The criteria establish that, as a general rule, these services are subject to the tax when performed within its territory of application.

However, the DGT confirms that an exemption is possible. According to Article 21.6 of Law 37/1992 on VAT, brokerage services may be exempt provided that two concurrent conditions are met:

• The activity is carried out on behalf of and for the account of third parties.
• The principal operation upon which the brokerage falls is an export of goods.

If these specific requirements are not proven, the provision of services must be taxed at the corresponding VAT rate.

What this means for you

This criterion has a direct impact on the tax operations of companies that hire commercial agents to seek clients abroad, as well as on self-employed individuals acting as intermediaries.

For companies, the correct structuring of brokerage contracts is fundamental. If the agent acts on their own account and not on behalf of the client, or if the operation does not constitute an export of goods under legal terms, the service will be subject to VAT, which will increase the cost of the provision for the Spanish client.

What should be done

It is necessary to verify the contractual structure of commercial brokerage activities. To apply the exemption under Article 21.6 of the VAT Law, it must be ensured that supporting documentation demonstrates that the intermediary acts strictly on behalf of and for the account of the third party in export operations. The absence of this clear distinction in document management can lead to the improper application of the exemption and potential requests for information from the Administration.