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V1067-18 25 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios por vía electrónica

Server maintenance and programming services provided to businesses outside Spain may be exempt from VAT

A company has requested clarification on whether its computer server maintenance and programming services are subject to VAT. The DGT has determined that if the recipients are businesses located outside the territory where the tax applies, the operations are not subject to VAT.

The question raised

Liability for Value Added Tax on the services subject to this consultation.

The DGT's ruling

Services provided by electronic means, such as remote maintenance of software and equipment, are subject to VAT when they are deemed to be performed within the territory to which the tax applies. If the recipient is a businessperson or professional acting as such and has their registered office or establishment outside said territory, the supplies shall not be subject to the tax.

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