Doctrine by topic · DGT Observatory

Effective Use: 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 High confidence 11 rulings · 2014–2023

Current position

The effective use or exploitation of the service, pursuant to Article 70.Two of Law 37/1992, allows for the taxation with IVA (Value Added Tax) of services provided to recipients not established in Spain if the use takes place within the national territory. This criterion is applicable only to the services specifically enumerated in said article. In the case of salaried personnel modules, the determination of units is based on effective use by activity through hours worked.

The DGT maintains a restrictive application of the effective use clause, limiting it exclusively to the services listed in Article 70.Two. Administrative jurisprudence confirms that services not included in said list, such as technical support, cannot be taxed under this criterion. On the other hand, the concept of effective use is applied specifically in the calculation of activity modules based on the workload.

Turning points

30 September 2021 V2483-21

Clarifies that technical support services are not in the list of Article 70.Two, preventing the application of the effective use criterion to tax the operation.

Analysis based on 11 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11

V2122-23 19 Jul 2023

Salaried staff module to be allocated based on hours worked per activity or in equal parts

SG de Impuestos sobre la Renta de las Personas Físicas

estimación objetivapersonal asalariadomódulorendimiento netoutilización efectiva Orden HFP/1172/2022LGT — Ley 58/2003 General Tributaria art. 89.1

Affects CompanyExpat · Non-residentIndividual

V2483-21 30 Sept 2021

Technical support services to a Swiss company not subject to Spanish VAT

SG de Impuestos sobre el Consumo

soporte técnicolugar de realizaciónempresariosujeciónutilización efectiva LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V2053-21 8 Jul 2021

Services from a Saudi Arabian firm subject to Spanish VAT via reverse charge mechanism

SG de Impuestos sobre el Consumo

inversión del sujeto pasivolugar de realizaciónutilización efectivadoble imposiciónempresario o profesional LIVA — Ley 37/1992 del IVA art. 69.1LIVA — Ley 37/1992 del IVA art. 70.Dos

Affects CompanyExpat · Non-residentIndividual

V1387-20 13 May 2020

Benefit-in-kind must be imputed for vehicle use even if not effectively used

SG de Impuestos sobre la Renta de las Personas Físicas

rentas en especierendimientos del trabajovalor de mercadoderecho de usoutilización efectiva LIRPF — Ley 35/2006 del IRPF art. 42.1LIRPF — Ley 35/2006 del IRPF art. 43.1

Affects CompanyExpat · Non-residentIndividual

V3036-18 26 Nov 2018

Funeral services provided to a British entity are not subject to VAT in Spain

SG de Impuestos sobre el Consumo

utilización efectivano sujeciónlocalización de serviciosempresario o profesionalterritorio de aplicación LIVA — Ley 37/1992 del IVA art. 69.UnoLIVA — Ley 37/1992 del IVA art. 70.Dos

Affects CompanyExpat · Non-residentIndividual

V3449-15 12 Nov 2015

Fiscal engine power must be apportioned equally if a vehicle is used for two activities and effective use cannot be determined

SG de Impuestos sobre la Renta de las Personas Físicas

estimación objetivapotencia fiscalrendimiento netoprorrateoutilización efectiva Orden HAP/2222/2014LGT — Ley 58/2003 General Tributaria art. 89.1

Affects CompanyExpat · Non-residentIndividual

V1788-15 8 Jun 2015

The VAT liability of brokerage services depends on the status of the recipient and the location

SG de Impuestos sobre el Consumo

intermediaciónreglas de localizaciónempresario o profesionalutilización efectivasujeción LIVA — Ley 37/1992 del IVA art. 3LIVA — Ley 37/1992 del IVA art. 69.Uno.1º

Affects CompanyExpat · Non-residentIndividual

V0547-15 11 Feb 2015

Telecommunications services may be located in Spain if their effective use occurs within national territory

SG de Impuestos sobre el Consumo

servicios de telecomunicacionesreglas de localizaciónutilización efectivaempresario o profesionalterritorio de aplicación del impuesto LIVA — Ley 37/1992 del IVA art. 69.1LIVA — Ley 37/1992 del IVA art. 69.2

Affects CompanyExpat · Non-residentIndividual

V0546-15 11 Feb 2015

Location of telecommunications services depends on the recipient or effective use within the territory

SG de Impuestos sobre el Consumo

servicios de telecomunicacioneslocalización de serviciosutilización efectivaempresario o profesionalsujeto pasivo LIVA — Ley 37/1992 del IVA art. 69LIVA — Ley 37/1992 del IVA art. 70

Affects CompanyExpat · Non-residentIndividual

V1999-14 25 Jul 2014

Commercial mediation services provided to a Swiss company are not subject to VAT in Spain

SG de Impuestos sobre el Consumo

mediación comercialreglas de localizaciónutilización efectivadestinatariosujeción LIVA — Ley 37/1992 del IVA art. 69.Uno.1ºLIVA — Ley 37/1992 del IVA art. 70.Dos

Affects CompanyExpat · Non-residentIndividual

V1051-14 14 Apr 2014

Advertising services may be taxable in Spain if effective use occurs through message dissemination within Spanish territory

SG de Impuestos sobre el Consumo

servicios de publicidadreglas de localizaciónutilización efectivadifusión de mensajesempresario o profesional LIVA — Ley 37/1992 del IVA art. 69.Uno.1ºLIVA — Ley 37/1992 del IVA art. 69.Dos.c)

Affects CompanyExpat · Non-residentIndividual

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