Doctrine by topic · DGT Observatory

Legal Relationship: 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 15 rulings · 2014–2026

Current position

The recipient of the transaction is the natural or legal person who holds the position of creditor in the legal relationship and is obliged to pay the consideration. It does not matter who makes the material payment, but rather who has the legal obligation to effect it. For VAT (IVA) liability to exist, there must be a legal relationship of exchange of reciprocal benefits where the remuneration is the effective consideration for the service.

The DGT maintains a constant position regarding the necessity of a legal relationship of exchange for tax liability. Throughout the rulings, it has been specified that the obligation to pay and the position of creditor define the recipient, regardless of the material payment or the intermediation of third parties.

Turning points

  1. V1886-22

    Establishes that if a branch does not assume the economic risk, it is not a distinct entrepreneur from its parent company, and therefore no legal relationship of exchange exists between them.

Analysis based on 15 of 15 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

15
V3065-23 23 Nov 2023

Transfers to fund sanitation infrastructure may not be subject to VAT

SG de Impuestos sobre el Consumo
contraprestaciónsubvención vinculada al preciorelación jurídicaprestación de serviciosdeducción de cuotas LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V2033-23 12 Jul 2023

Transfers to finance sanitation infrastructure are not subject to VAT

SG de Impuestos sobre el Consumo
contraprestaciónsubvención vinculada al precioprestación de serviciosrelación jurídicadeducción de cuotas LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V1543-18 6 Jun 2018

Doctoral thesis grants are not subject to VAT

SG de Impuestos sobre el Consumo
contraprestaciónsubvención vinculada al preciobase imponibleprestación de serviciosrelación jurídica LIVA — Ley 37/1992 del IVA art. 78.1LIVA — Ley 37/1992 del IVA art. 78.2.3º
Affects CompanyExpat · Non-residentIndividual
V1966-14 18 Jul 2014

Diesel suppliers cannot invoice transport agencies directly

SG de Impuestos sobre el Consumo
entrega de bienesbase imponiblepoder de disposicióndestinatariohecho imponible LIVA — Ley 37/1992 del IVA art. 8.UnoLIVA — Ley 37/1992 del IVA art. 78.Uno
Affects CompanyExpat · Non-residentIndividual

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