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V2092-18 16 July 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

E-learning application services subject to VAT if the recipient is located within the tax territory

A company markets a monthly subscription application designed to assist communication for people with disabilities. The DGT has determined that this constitutes an electronically supplied service, which is taxable in Spain if the customer is a professional or an individual established or resident in Spanish territory.

The question raised

Taxation of the transaction under Value Added Tax.

The DGT's ruling

Access to the application is classified as a service provided by electronic means. The transaction shall be subject to VAT when it is understood to be carried out within the territory to which the tax applies, either because the recipient is a business or a professional with a registered office or residence in Spain, or because they are an individual established or habitually resident in Spain. To determine the location of non-professional end consumers, the presumption rules of Implementing Regulation (EU) No 282/2011 must be applied.

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