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V0101-24 15 February 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios por vía electrónica

Electronic services provided to customers in Ceuta or Melilla are not subject to Spanish VAT

A company providing electronic communication services via the internet has requested clarification on whether its services to individuals and entities in Ceuta or Melilla are subject to VAT. The DGT has ruled that, according to the rules of location, these transactions are not taxable within the territory where the tax applies.

The question raised

Place of supply, for Value Added Tax purposes, of the services provided by the applicant, both to natural persons and to entities located, in both cases, in Ceuta or Melilla.

The DGT's ruling

If the recipient is a businessperson or professional, the general rule applies and taxation occurs where the recipient is established, meaning no taxation occurs in Spain if they are in Ceuta or Melilla. If the recipient is an individual, the special rules for electronically supplied services apply, which establish that they only tax if the recipient is within the territory to which the tax applies. Consequently, services provided to individuals in Ceuta or Melilla are not subject to Spanish VAT.

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