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V1735-19 9 July 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · bien de inversión

Software is not classified as an investment good for VAT purposes as it is an intangible asset

A query was raised regarding whether proprietary development software can be considered an investment good for VAT purposes. The DGT ruled that, as it is an intangible rather than a tangible asset, it does not meet the legal definition of an investment good.

The question raised

Whether said "software" is considered an investment good for the purposes of Value Added Tax.

The DGT's ruling

Pursuant to Article 108 of Law 37/1992, investment goods must be tangible, movable, animate, or immovable assets. Given that software is an intangible and non-tangible asset, it does not qualify as an investment good for the purposes of Value Added Tax.

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