VAT Ruling on Services by Partners and Administrators: Implications for Companies and Compliance

• Spain’s General Directorate of Taxes issued a ruling on the VAT treatment of services provided by partners and administrators of a company
• Services rendered by a partner to the company are subject to VAT if carried out independently, but not if provided within a dependent relationship
• The ruling was based on a decision by the Court of Justice of the European Union regarding the VAT treatment of activities of board members
• The GDT concluded that activities of administrators or board members are not subject to VAT if they are not considered taxable persons
• Companies should understand the implications of the ruling on the VAT taxability of services provided by partners and administrators.

Source: bdo.global

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---