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V1191-17 18 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

PDF book downloads and recorded online courses subject to 21% VAT

A taxpayer queried the VAT rate applicable to the sale of books via digital download and online courses. The DGT ruled that book downloads without physical media and automated courses constitute electronic services subject to the standard 21% VAT rate.

The question raised

Type of tax applicable to each operation.

The DGT's ruling

The downloading of books in PDF format constitutes an electronically supplied service and not a supply of goods, and is therefore taxed at 21%. Recorded or automated courses where human intervention is ancillary are also electronic services subject to 21%. Only books on physical media or teaching services provided by a teacher via remote connection may qualify for reduced rates or exemptions.

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