B) Concept of companies or professionals
The delivery of goods or provision of services must be carried out by a businessman or professional to be subject to VAT.
Entrepreneurs and professionals are defined in a specific way in the VAT. Thus, they have this consideration:
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Those who carry out business or professional activities, unless they do so exclusively free of charge.
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Commercial companies, unless proven otherwise.
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Those who exploit a tangible or intangible asset in order to obtain continuous income over time. In particular, property lessors.
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Those who develop land, promote, build or rehabilitate buildings intended for sale, allocation or transfer, even occasionally.
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Individuals who occasionally deliver a new means of transport exempt from tax because it is destined for another Member State of the European Union, who will be entrepreneurs only with respect to this operation.
The status of businessman or professional, in the cases referred to in the first four indents, is for VAT purposes, from the moment goods or services are acquired with the intention, confirmed with objective elements, of using them for the development of the corresponding activities.
Examples:
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An individual who rents a garage or a commercial premises that he owns becomes a businessman, for VAT purposes, and must charge and pay the Tax, as well as comply with the rest of the obligations that correspond to the taxpayers of this tax.
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Three people who build a building with three homes for subsequent allocation as a habitual residence form a community of property that, for VAT purposes, will be considered a business owner.
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The developer of a home for personal use is not considered a business owner since he or she does not intend the construction to be sold, awarded or transferred.
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A public limited company that is going to dedicate itself to the activity of selling footwear and that acquires goods and services with the intention, confirmed by objective elements, of allocating them to said activity, has the status of entrepreneur or professional from the time it makes the aforementioned acquisitions, even if it has not yet carried out any footwear sales operation.
Rating of the relationship between partner and society
The determination of whether it is a labor dependency relationship or a professional activity in the field of VATmust be based on a case-by-case analysis, based on the indications established by the jurisprudence of the CJEU (Cases C-235/85, C-202/90, C-355/06).
In the case of natural persons who provide their professional services to a company of which they are the majority partner, where both carry out a professional activity, the relationship between the partner and the company must be classified as employment (not subject to VAT). , if based on the conditions agreed between them it turns out that:
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The professional is subject to the organizational criteria of the entity,
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Does not receive significant financial compensation linked to the results of its activity, and
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Responsibility towards third parties lies with the company.
(Queries from the General Directorate of Taxes V2166-15, V0086-16 and V0482-16).