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V1052-19 17 May 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Creation of personalised advertising spaces classified as a supply of advertising services

A company creating bespoke advertising spaces has sought clarification regarding the nature and place of supply of its operations. The DGT has determined that these activities constitute a single supply of advertising services and has established the rules for determining the place of supply based on the recipient.

The question raised

Nature of the operations performed and the place of performance thereof for Value Added Tax purposes. Nature of the operations performed and the place of performance thereof for Value Added Tax purposes.

The DGT's ruling

The creation of a commercial space through design, construction, assembly, and decoration constitutes a single supply of advertising services if the space serves as an attraction to disseminate product qualities. These services are deemed to be performed in Spain if the recipient is a business or professional established in Spanish territory. If the recipient is from a third country, the effective use criterion shall apply if the service is used in the performance of transactions subject to tax in Spain.

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