Doctrine by topic · DGT Observatory

Reciprocity of Treatment: 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

Stable position Medium confidence 16 rulings · 2016–2023

Current position

The taxation of services provided to entities not established in Spain depends on whether their effective use or exploitation takes place within the national territory. In cases of partial use, it is permissible to apply a proportion based on the income from operations subject to tax in Spain. The possibility of requesting a VAT (IVA) refund through the procedure set out in Article 119 bis is conditional upon compliance with the requirement of reciprocity of treatment.

The DGT's position remains constant in the application of effective use or exploitation to determine territoriality. No doctrinal change is observed in the sequence, but rather a repeated application of criteria regarding the nature of the operation and the requirement of reciprocity for the refund of tax amounts.

Analysis based on 14 of 16 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

16
V3041-21 7 Dec 2021

UK firms may pay VAT in Spain if services are used here

SG de Impuestos sobre el Consumo
lugar de realizaciónuso y explotación efectivareciprocidad de tratoempresario no establecidoinversión del sujeto pasivo LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 69
Affects CompanyExpat · Non-residentIndividual

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