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V0904-22 28 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios por vía electrónica

Electronic content creation services may be subject to VAT if effectively used or exploited in Spain

A content creator asks whether her video and photo services for a UK company are subject to VAT. The DGT explains that although the general rule places the transaction outside of Spain, the criterion of effective use and exploitation could apply if the service is used within Spanish territory.

The question raised

Subject to Value Added Tax of the services provided by the applicant.

The DGT's ruling

Services provided electronically to a recipient outside the European Union may be considered to be performed in Spain if their effective use or exploitation occurs within the national territory. To determine this, it must first be established whether the operations related to the service are carried out in Spain and whether there is a direct or indirect relationship with the provision. This analysis of effective use must be conducted on a case-by-case basis and is a matter of fact that must be proven by the interested party.

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