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V0202-22 8 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

VAT on musical transcriptions taxed in Spain; VAT on downloaded sheet music depends on the €10,000 threshold

A company has requested clarification on how to charge VAT for its manual audio transcription services and the sale of downloadable sheet music to private individuals in other Member States. The Tax Agency has ruled that manual transcription is taxed in Spain, whereas the download of sheet music follows special rules based on sales volume.

The question raised

Place of supply of services provided by the taxpayer and taxation under Value Added Tax.

The DGT's ruling

The manual transcription of audio is not a service provided by electronic means, therefore it is located in Spain and is subject to 21% VAT. The download of sheet music is a service provided by electronic means; if the volume of these operations does not exceed 10,000 euros, taxation may occur in Spain. If this threshold is exceeded, taxation must occur in the Member State of consumption, with the option to use the One Stop Shop (OSS) scheme.

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