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V0032-18 10 January 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · compensación equitativa

Private copying levy must be included in the VAT taxable base for equipment sales

A management entity requested clarification on whether the private copying levy forms part of the VAT taxable base and whether its collection services are exempt. The DGT has ruled that the levy must be included in the taxable base for the sale of equipment and that the entity's management services are subject to VAT.

The question raised

1.- Inclusion of the aforementioned compensation in the taxable base of Value Added Tax.

The DGT's ruling

The private copying levy is not consideration for authors, and therefore is not subject to VAT. However, as it is a credit held by the distributor against the customer for the sale of the equipment, it must be included in the taxable base of said transaction. On the other hand, the collection management services provided by the entity are not exempt and must charge VAT on the agreed commission.

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