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V0912-22 28 April 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Content creation and web design services may be taxable in Spain if effectively used or exploited within the territory

A taxpayer has requested clarification regarding the VAT liability of their digital content creation, social media advertising, and web design services provided to clients in Spain, the EU, or third countries. The Directorate General for Taxes (DGT) determines that these constitute services provided by electronic means and analyses their location based on general rules and the effective use and exploitation clause.

The question raised

Liability for Value Added Tax on services provided.

The DGT's ruling

Digital content creation, web design, and search engine optimization services are services provided by electronic means. If the recipient is a business or professional established in Spain, the general rule of localization applies. If the recipient is outside the Community, the service may be taxable in Spain if it is effectively used or exploited in Spanish territory, regardless of whether the recipient carries out taxable transactions or not. This use must be analyzed on a case-by-case basis.

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