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V0716-16 23 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Custom design services by a sculptor may be exempt from VAT

A sculptor has enquired whether digital modelling and the transfer of rights to their computer files are exempt from VAT. The DGT has determined that custom design services provided by the artist as an individual are exempt, but this does not apply if they are considered services provided electronically via downloadable content.

The question raised

Exemption from Value Added Tax for the aforementioned operations and, where applicable, the applicable tax rate.

The DGT's ruling

Customized design services for drawings or sculptures sent by electronic means are not considered services provided by electronic means. These professional services, provided by visual artists who are authors of original works, are exempt from VAT pursuant to Article 20.One.26 of Law 37/1992. However, the exemption does not apply if the supply of non-customized digital content is carried out via internet download, as it is considered a service provided by electronic means.

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