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V0799-18 22 March 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión de uso

Licensing of software applications to local authorities in other provinces is subject to 21% VAT

A Provincial Council has requested clarification regarding the VAT regime applicable to the licensing of software applications and training services to other local authorities. The Directorate General for Taxes (DGT) has determined that, as these are entities from other provinces, the transactions are subject to the standard VAT rate.

The question raised

VAT regime applicable to the services of assignment of applications and training to be carried out by the applicant.

The DGT's ruling

The assignment of use of computer applications is classified as a provision of services. Training services for their use are ancillary to the main assignment, and therefore follow the same regime. As they are provided to local entities from other provinces, the exemption for services between dependent administrations does not apply, resulting in them being subject to the general rate of 21%. The taxable base is the total amount of the agreed consideration.

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