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Insurance Operations: DGT doctrinal evolution

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

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How the DGT's position has evolved

Settled doctrine High confidence 14 rulings · 2014–2023

Current position

Benefits covering an eventual risk in exchange for a lump sum amount are considered insurance operations exempt from IVA (Value Added Tax). For the exemption to be applicable in rebilling, the cost must be the exact amount, without profit margins. If the insurance is invoiced with an amount different from the actual cost, the operation loses the exemption and becomes subject to the tax. The independence of the benefit depends on the client's freedom of choice and on it not being an inseparable element of the main service.

The DGT's position remains constant in classifying risk coverage as an exempt insurance operation. The evolution focuses on the precision of the requirements to maintain said exemption in rebilling, requiring the amount to be the exact cost without margins. Likewise, it has been delimited that exempt mediation requires the approach of the parties, excluding support or 'back office' services.

Turning points

  1. V1460-17

    Specifies that the mediation exemption requires the approach between the parties for the signing of contracts, explicitly excluding 'back office' services.

Analysis based on 12 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V3061-23 23 Nov 2023

Exact cost recovery of insurance to a subsidiary may be VAT-exempt

SG de Impuestos sobre el Consumo
suplidosrefacturación de gastosprestación de serviciosoperaciones de seguroprestación única LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual

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