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V1665-16 ·18 April 2016 ·consulta-vinculante Medium impact
Tax

App users charging for information are considered traders and must issue VAT invoices

A software company requested clarification on whether users receiving payments for information activities on their application are subject to VAT and Income Tax (IRPF). The Directorate-General for Tax (DGT) ruled that these users are traders or professionals subject to VAT and that there is no obligation for Income Tax withholding.

In 6 key points

How it affects those involved

Users of information-based platforms who generate income must register for VAT and issue formal invoices, as they are classified as economic actors rather than mere users.

Lifecycle

2016-04-18PublishedPublished 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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