By Francisco Javier Sánchez Gallardo. Only the supplies of goods and services carried out by taxable persons acting as such are subject to VAT. The VAT Directive states as one of the conditions to be considered as a taxable person to act independently, being excluded from that condition, among others, the companies’ employees and other dependent person or entities. One area in which said requisite of independence has shown to be controversial is that of the transactions carried out between entrepreneurs and employees. As a general comment, we can conclude that the ECJ has constantly declared these transactions to be taxed in the same terms and conditions than other transactions, without considering the provisions of services made by the employees as relevant to this effect.
Source: LinkedIn
