Spain: Services performed by Spanish branch for foreign head office not subject to VAT (National High Court decision)
Because services were performed within the “same legal entity,” they were not subject to VAT
Because services were performed within “same legal entity,” they were not subject to VAT
The National High Court held (appeal no. 1163/2020 dated 22 February 2023) that a Spanish branch that rendered support services to its foreign head office was not conducting an independent economic activity and thus, because such services were performed within the “same legal entity,” they were not subject to value added tax (VAT).
Read a March 2023 report [PDF 501 KB] prepared by the KPMG member firm in Spain
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