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V1051-14 14 April 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios de publicidad

Advertising services may be taxable in Spain if effective use occurs through message dissemination within Spanish territory

The inquiry examines the VAT treatment of advertising services. The DGT clarifies that even if the recipient is a business located outside Spain, the service will be taxable in Spain if the advertising messages are effectively disseminated within Spanish territory.

The question raised

The one related to the facts.

The DGT's ruling

Advertising services are located according to the general rules of Law 37/1992. If the recipient is a business located outside the Community, the general rule is non-subjectivity in Spain. However, pursuant to Article 70.Two, if the effective use or exploitation of the service takes place in Spain, the service is subject to VAT. In advertising, effective use occurs where the advertising messages are disseminated.

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