Doctrine by topic · DGT Observatory

Location: evolution of DGT doctrine

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Settled doctrine High confidence 41 rulings · 2014–2024

Current position

The location of services depends on the nature of the provision and the status of the recipient. For general services provided to entrepreneurs, the location is determined by the recipient's registered office or permanent establishment. For services provided to non-entrepreneurs, the rule of effective use or exploitation in national territory applies to determine VAT liability according to Article 70.Two of Law 37/1992.

The DGT's position remains constant in the application of location rules according to the recipient. There is a trend toward applying the clause of effective use or exploitation in Spain for services provided to non-entrepreneurs when the actual use of the service occurs in national territory, as detailed in rulings V0715-18 and V1094-24.

Turning points

  1. V0715-18

    Introduces the application of the clause of effective use or exploitation in Spain for services provided to entrepreneurs based in another Member State if the service is effectively used in national territory.

  2. V1094-24

    Specifies that effective use or exploitation for services to individuals outside the EU must be analyzed on a case-by-case basis as a matter of fact that must be proven by the interested party.

Analysis based on 37 of 41 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24

Apply this to your case

VAT advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact