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V1919-21 18 June 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Translation services may be exempt from VAT if they constitute a personal contribution distinct from the original work

A translator inquires whether their services provided to a company in the United Kingdom are subject to VAT and which rate would apply. The DGT indicates that, although the location would generally not be in Spain, the rule of effective use could apply and, in any case, the exemption will depend on whether the translation constitutes a personal contribution.

The question raised

Question raised: Whether the services provided are subject to Value Added Tax and, if so, the applicable tax rate.

The DGT's ruling

Translation services are exempt from VAT when the natural person makes a personal contribution that is distinct from the pre-existing work. The exemption does not apply to the mere translation of brochures, presentations, instructions, or manuals. If the service were subject to VAT and not exempt, the applicable rate would be the general rate of 21%.

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