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V0836-22 19 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario

Obligation to charge VAT on content creation services based on location and recipient

A professional creating digital content for foreign recipients seeks clarification on VAT application. The DGT states that, upon receiving consideration, she holds the status of a business person, and tax liability will depend on the location of the service and whether they qualify as electronic services.

The question raised

Obligation to charge Value Added Tax on the invoices issued for their work.

The DGT's ruling

The taxpayer holds the status of an entrepreneur by performing activities for consideration. If the services are provided to entrepreneurs outside of Spain, they are not understood to be performed within the national territory. If the recipients are private individuals, the rules for electronic services shall apply, and they may be subject to taxation in Spain if the threshold of 10,000 euros is not exceeded or if specific requirements for effective use and exploitation are met. Finally, if the drawing or adaptation services are considered copyright, they could be subject to but exempt from VAT.

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