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V0748-20 7 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · contraprestación

No VAT on free social media services in exchange for personal data

A user inquired whether social media services provided in exchange for the transfer of personal data are subject to VAT. The DGT ruled that the transaction is not subject to tax because there is no real consideration.

The question raised

Liability for Value Added Tax on the aforementioned operation, the obligation to charge the Tax by the service-providing company and, where applicable, the calculation of the taxable base.

The DGT's ruling

The transfer of personal data by the user does not constitute an economic activity or a provision of services, as it belongs to their private sphere and there is no organization of means. Likewise, the platform's service is not carried out through consideration, as there is no direct relationship between the service provided and the data received, given that the provider offers the same service regardless of the quantity or quality of the data provided.

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