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V0560-17 2 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

4% VAT rate applies to layout services if they result in the immediate production of a book

A professional has queried whether text and photograph layout services for a book qualify for the reduced VAT rate. The DGT has ruled that if the layout provided in PDF or InDesign format constitutes the delivery of the finished book, pending only printing, the 4% rate applies.

The question raised

Applicable tax rate to the layout operations subject to consultation whose immediate purpose is the obtaining of a book.

The DGT's ruling

The 4% rate applies to works executed that have as an immediate result the obtaining of a book, newspaper or magazine in sheet or continuous form, from a photolith or that consist of its binding. If the layout delivered to the printer constitutes the delivery of the finished book in the absence of its printing, it is taxed at 4%. The reduced rate does not apply to partial functions or intermediate graphic processes such as editorial design or layout that do not have that immediate result, which are taxed at 21%.

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