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V0915-19 29 April 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios por vía electrónica

Leasing of servers classified as electronic service provision

A company inquired about its VAT liability for its intermediary activity in server leasing for cryptocurrency mining. The DGT determines that server leasing constitutes an electronic service provision and examines location rules based on the recipient.

The question raised

Liability for Value Added Tax on the operations to be carried out by the consultant. Heading of the Economic Activities Tax Schedules in which the entity must register for the exercise of said activity.

The DGT's ruling

The entity is a business operator and its server leasing services, when acting in its own name, are considered electronic services. Liability for VAT will depend on the location of the recipient and the rules of effective exploitation. Regarding the IAE, if it is server subleasing, heading 859 applies; if it is a connection service, heading 769.9 applies.

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