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V0773-22 11 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · actividad empresarial

Influencer activities deemed business activities and may be subject to VAT based on effective use

An influencer sought clarification regarding registration in the Business Activity Tax (IAE), VAT taxation, and IRPF withholdings for services provided to a UK-based company. The DGT determined that the activity constitutes a business activity, that VAT liability depends on effective exploitation in Spain, and that there is no obligation to withhold IRPF.

The question raised

1st Heading of the IAE regarding which registration is required.

The DGT's ruling

The production of videos and photographic services are classified as business activities (Section 1 of the IAE) and not professional activities. Advertising services provided to a recipient in the United Kingdom are not subject to Spanish VAT due to rules of localization, unless their effective use or exploitation in Spain is demonstrated. There is no obligation for the British company to withhold Personal Income Tax (IRPF) if it does not operate in Spain through a permanent establishment.

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