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V1417-20 14 May 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · creadores de contenido

Content creator services may be subject to VAT and Income Tax withholding depending on their nature

A query was made regarding the VAT treatment and Income Tax (IRPF) withholding applicable to digital content creator services. The Directorate General for Tax (DGT) has determined that these services are subject to VAT if provided by professionals and that the income constitutes returns from economic activity, with specific nuances regarding withholding for the assignment of image rights.

The question raised

VAT taxation on services provided by so-called "digital content creators" and the applicable personal income tax (IRPF) withholding tax.

The DGT's ruling

Content creators acting with the intention of intervening in the market as professionals shall be subject to VAT at the general rate of 21%. Their income is classified as income from economic activity, subject to a 15% withholding tax (or 7% in cases of commencement of activity). Notwithstanding, the portion of the consideration corresponding to the assignment of image rights shall be subject to a 24% withholding tax.

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