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V1152-21 29 April 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

VAT liability depends on the nature of the activity: supply of goods, digital services, or advertising

A consultant engaged in online commerce inquires about the VAT liability of her sales of prints, digital downloads, and advertisements. The DGT determines that taxation varies depending on whether it involves the supply of goods, electronic services, or advertising, applying specific rules of location.

The question raised

Question raised 1. Whether the income obtained by the consultant is subject to Value Added Tax.

The DGT's ruling

Prints sent by mail are supplies of goods taxable in Spain or under the distance selling regime according to the limits of each Member State. Digital downloads are services provided by electronic means that are taxed in the country of the non-professional recipient if limits are exceeded or according to rules of location. Advertising services between professionals are taxed in Spain if the recipient has their registered office or establishment here, unless the rule of effective use and enjoyment applies.

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