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V1440-21 ·17 May 2021 ·consulta-vinculante Medium impact
Tax

Social media advertising services may be taxable in Spain if their effective use or exploitation occurs within national territory

A taxpayer queried the location of their social media book advertising services provided to publishers and authors worldwide. The DGT has determined that, although these are not services provided by electronic means, the rule of effective use and exploitation applies if the service is used in Spain.

In 5 key points

How it affects those involved

Businesses providing social media advertising services globally must assess whether their services are effectively used or exploited within Spain to determine potential tax liabilities.

Lifecycle

2021-05-17PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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