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V2178-14 6 August 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

21% VAT rate applies to the sale of digital download codes for eBooks without physical media

A taxpayer queried whether a leaflet containing a QR code for downloading a book could qualify for the reduced 4% VAT rate. The DGT ruled that, as no physical medium is provided, the transaction constitutes an electronically supplied service and must be taxed at the standard rate of 21%.

The question raised

Application of the reduced rate of 4 percent in the acquisition of said product.

The DGT's ruling

Books on any physical medium are taxed at 4%, including files on CD-ROM or USB drives. However, services provided by electronic means cannot be taxed at reduced rates. The commercialization of download codes for files incorporating e-books constitutes a service provided by electronic means, and therefore is taxed at 21%.

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