Doctrine by topic · DGT Observatory

Effective Use and Exploitation: 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 48 rulings · 2020–2025

Current position

Services provided to recipients not established in Spain may be taxed in national territory through the rule of effective use or exploitation under Article 70.Two of the IVA (Value Added Tax) Law. For its application, the service must be used directly or indirectly by the non-resident entity in the performance of transactions subject to the tax in Spain. The determination of this use must be analyzed on a case-by-case basis as a matter of fact.

The DGT's position remains stable throughout the analyzed sequence. From ruling V2651-20 to V1007-25, the criterion focuses on the application of the rule of effective use or exploitation when the service is used in Spain for transactions subject to the tax. No changes are observed in the interpretation of the rule, but rather a reiteration of its application to different types of services.

Analysis based on 45 of 48 rulings with a stated position. Updated 18 September 2026.

Rulings on this topic

24
V0368-22 24 Feb 2022

Legal services location depends on immovable property link

SG de Impuestos sobre el Consumo
servicios relacionados con bienes inmueblesreglas de localizaciónuso y explotación efectivatransmisión de propiedadempresario o profesional LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V0094-22 21 Jan 2022

Mediation on behalf of a non-EU tour operator may be subject to VAT if used in Spain

SG de Impuestos sobre el Consumo
mediación en nombre y por cuenta ajenauso y explotación efectivalocalización de las prestacionesempresario o profesionalterritorio de aplicación del impuesto LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno-a
Affects CompanyExpat · Non-residentIndividual
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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