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V2040-18 11 July 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IVA · servicios prestados por vía electrónica

Online supply of graphics and audiovisual resources deemed electronic service

A company inquires about VAT taxation and withholdings on the sale and purchase of online graphics and audiovisual resources. The DGT determines that supplying such content via a platform constitutes an electronic service.

The question raised

Regarding the taxation for Value Added Tax purposes of the online sales of graphic and audiovisual resources to clients, whether they are individuals or companies, either Spanish or foreign.

The DGT's ruling

The supply of graphic and audiovisual resources through an online platform is considered a service provided by electronic means. The location of these services depends on whether the recipient is a business or an individual and on their residence or registered office in Spain. The services of collaborators involving the creation of original designs under supervision may be exempt from VAT if they constitute professional services of visual artists. Regarding withholdings, payments to authors may be classified as income from employment or professional activities, subject to withholding in accordance with Personal Income Tax regulations.

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