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V1431-22 16 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Minutes, budgets or resolutions are not subject to 4% VAT as they are not considered books

A local council has enquired whether the binding of its minutes and budgets, as well as the production of municipal ordinances, qualifies for the reduced 4% VAT rate. The DGT ruled that these documents do not constitute books and that the production of ordinances is a one-off service.

The question raised

Consideration of budget books, minutes, administrative resolutions, and local police orders as books for the purpose of applying the reduced rate of 4 percent in Value Added Tax. Furthermore, consideration of design, layout, editing, printing, and binding services as a single supply that results in the immediate obtaining of a book, for the same purposes.

The DGT's ruling

Budget books, minutes, administrative resolutions, or local police orders cannot be considered "books" for the purposes of the reduced 4% rate; therefore, binding is taxed at 21%. However, the design, layout, editing, printing, and binding of municipal ordinances constitute a single supply that follows the regime of the principal transaction.

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