Binding tax ruling V4124-15, issued by the Spanish General Tax Directorate on December 21, 2015.
This query analyses the case of a Spanish company that is engaged in providing translation services to entities not established in the European Union, in particular in Japan and Russia.
The Spanish General Tax Directorate begins by mentioning that for this service it would apply, in principle, the general rule for B2B cases considering that the service is rendered at headquarters of the recipient. However, the “use and enjoyment rule” included in article 70.Dos of the Spanish VAT Law, establishes for certain services, including those of translation, when in accordance with the rules of localization understand not carried out in the EU but effective use or exploitation are carried out in that territory, that such services shall be considered as rendered in the Spanish VAT territory.
Source: Diligens
