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V2492-21 30 September 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios electrónicos

VAT applicability for supervision and marketing services to non-EU companies depends on effective use in Spain

A self-employed professional inquired whether their team supervision services in India and digital marketing services for a UK company are subject to VAT. The DGT ruled that, although these do not qualify as electronic services due to the requirement for human intervention, they could be subject to VAT if it is demonstrated that their effective use or exploitation occurs within Spanish territory.

The question raised

Subjectivity of the aforementioned services to Value Added Tax.

The DGT's ruling

Supervision and marketing services are not electronic services if they require significant human intervention and are not automated. As a general rule, since the recipient is a company in the United Kingdom, the provision does not take place in Spain. However, the criterion of effective use and exploitation shall apply if the services are materially used or exploited in Spanish territory, which must be proven on a case-by-case basis.

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