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V1068-16 16 March 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · prestación de servicios

Banner advertising on websites or blogs is subject to VAT and does not require IRPF withholding

A trader inquired whether commission payments to website/blog managers for the insertion of advertising banners are subject to VAT and whether IRPF withholdings must be applied. The DGT has determined that the service constitutes advertising subject to VAT and that there is no obligation to withhold IRPF.

The question raised

Treatment of the aforementioned commission regarding VAT and Personal Income Tax (withholdings).

The DGT's ruling

The insertion of an advertisement on a website or blog constitutes a provision of advertising services subject to VAT. The taxable base shall be the amount in cash or the cash equivalent of the discount vouchers provided. Regarding Personal Income Tax (IRPF), the amounts paid for this concept are not included within the income subject to withholding or payment on account according to the Tax Regulations.

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