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V0932-21 15 April 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Electronic audiovisual services may be subject to VAT if effectively used in Spain

An advertising professional inquired whether delivering videos to an internet platform in the USA is subject to VAT. The DGT noted that although the general rule of location places the transaction outside Spain, the criterion of effective use and exploitation could apply if the services are used within Spanish territory.

The question raised

Liability for Value Added Tax regarding the services provided by the applicant.

The DGT's ruling

Services provided electronically to a recipient not established in the European Union are not subject to VAT according to the general rule of location. However, pursuant to Article 70.Two of Law 37/1992, they shall be deemed to be provided in Spain if their effective use or exploitation takes place in Spanish territory. The application of this effective use rule must be analyzed on a case-by-case basis to determine whether such economic link exists.

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