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V0227-18 1 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · compensación equitativa

Digital levy must be included in the VAT taxable base for the sale of equipment or media

A query was raised regarding whether the private copying levy (digital levy) should be integrated into the VAT taxable base. The DGT has determined that, although the levy is not consideration paid to authors, it does form part of the taxable base for the sale of equipment because it constitutes a credit in favour of the seller.

The question raised

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

The DGT's ruling

The equitable compensation for private copying forms part of the VAT taxable base of the sale or assignment of use of equipment, devices, or media. This is because the amount constitutes a credit held by the commercial distributor against the customer. Therefore, VAT must be charged at the general rate of 21% on the base that includes said levy.

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