Spanish Central Economic-Administrative Court on the VAT treatment of VIA-T devices

The Spanish Central Economic-Administrative Court has analysed in its resolution nº 1803/2019 the VAT treatment of commissions received for the delivery and maintenance of VIA-T cards. In the case at hand, the entity receives from its customers certain commissions for the transfer and maintenance of the so-called VIA-Ts which, placed in vehicles, allow payment to be made by passing through lanes expressly designated for that purpose both on toll motorways and in certain public car parks. The entity considers that the delivery and maintenance of the aforementioned VIA-Ts constitute an ancillary service to another main service, related to payment or credit cards, and therefore exempt from VAT under art. 20.One.18.º of Law 37/1992 (“VAT Law”).

The Court does not agree with the entity and considers that the provision of services of transfer and maintenance of VIA-T devices does not fulfil the specific and essential functions of a payment, and cannot be considered to have the effect of transmitting funds and involving legal and financial changes, within the meaning established by EU case law, but is a material or technical service which is subject to VAT.