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V1456-17 7 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Web platforms must apply VAT to mediation, advertising, and rights transfer services based on the recipient's location

A company owning a web platform has requested a ruling on the taxation of its mediation commissions, advertising fees, third-party capital contributions, and the transfer of exploitation rights. The DGT has determined that these operations constitute the supply of services subject to VAT, in accordance with the rules of location and the specific nature of each activity.

The question raised

Taxation of the operations carried out by the applicant.

The DGT's ruling

Mediation commissions are subject to VAT when the recipient is a business or professional with a registered office or establishment in the territory of application, or when they are effectively used for taxable operations in said territory. Advertising services are subject to VAT if the recipient has their registered office or establishment in the territory, or if they are effectively used therein. The assignment of exploitation rights of the platform is also subject to VAT if the assignee is established in the territory or if the effective exploitation occurs therein. Capital contributions, whether through the issuance of shares or profit-sharing agreements, do not constitute taxable events.

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