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V2175-17 22 August 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios de telecomunicación

Location of telecommunications services depends on recipient's premises or effective use in Spain

A vehicle tracking company has requested clarification on when its services provided and received are subject to Spanish VAT. The DGT clarifies that the location depends on whether the recipient is a taxable person or a private individual, and on the rules regarding effective use.

The question raised

Liability for Value Added Tax on the services provided by the applicant and those of which they are the recipient.

The DGT's ruling

Telecommunications services provided to entrepreneurs are located in Spain if the recipient has its registered office or establishment in the territory. If the service is located abroad according to general rules, it may be taxed in Spain if it is effectively used or exploited in the territory to carry out transactions subject to tax. For private individuals, location presumptions apply based on the landline, mobile, or device used.

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