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V3520-20 ·10 December 2020 ·consulta-vinculante Medium impact
Tax

VAT must be charged to customers if software license intermediation is carried out in one's own name

A company has requested clarification on whether VAT should be applied when renewing software licences from a US entity for clients in Spain. The DGT has ruled that if the company acts in its own name, it is providing a service subject to VAT, which must then be charged to its customers.

In 6 key points

How it affects those involved

Companies acting as principals in software licensing transactions must ensure VAT is correctly applied to their services, rather than treating the transaction as a mere pass-through of costs.

Lifecycle

2020-12-10PublishedPublished 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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