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V2284-24 28 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · cesión de derechos de autor

Assignment of video game copyrights to a French company is not subject to Spanish VAT

A group of authors who created a video game sought clarification on the taxation of royalties received from a French publisher. The DGT determined that the provision of services is not subject to VAT in Spain as it is an intra-Community transaction, and that the income is classified as employment income for Income Tax (IRPF) purposes.

The question raised

Taxation in VAT and Personal Income Tax.

The DGT's ruling

The assignment of copyrights to an entity in France is not subject to Spanish VAT, even if it constitutes an intra-Community supply. The community of property may deduct VAT on its expenses if these are related to the activity. For Personal Income Tax purposes, income from the assignment of copyrights is classified as income from employment, unless there is an organization of means that constitutes an economic activity.

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