The Spanish VAT Interpretation of the Use and Enjoyment Rule

Article 59ab of the VAT Directive (Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax) was implemented into the Spanish domestic legislation through Article 70(2) of the Spanish VAT law (Law No. 37 of 28 December 1992 on value added tax). As is well known, this article contains a special place of supply rule applicable to only certain types of services and under very particular circumstances. This special provision is known as the “use and enjoyment” rule.

In this article, Fernando Matesanz (Spanish VAT Services; Madrid VAT Forum Foundation) describes the interpretation that the Spanish tax authorities make of this rule, which has recently been the subject of some controversies.

Source: kluwertaxblog.com

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