Binding tax ruling number 1999-14 about the “use and enjoyment rule” on location of services

 In TAX NEWS

The applicant for the query is a Spanish company aimed to clinical testing in their laboratories.

 The purpose of this consultation is to determine the location of sales agent services (aimed to obtaining customers in Spain) rendered by the applicant and addressed to a Swiss company dedicated to collecting and preserving stem cells derived from cord.

 The Spanish General Tax Directorate solve this query by applying the general rule for B2B services, being this service located at the premises of the addressee. The General Tax Directorate explain that “use and enjoyment rule” would not apply in this case due to the fact that it would require the service to be used by the recipient in conducting operations in the Spanish VAT territory, however the Swiss entity does not carry out any operations within the Spanish VAT territory but in Belgium, where it is performed the process of analysis and processing of stem cells derived from cord.

 For further information please contact us at info@diligens.es

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