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V2535-21 14 October 2021 · SG de Fiscalidad Internacional Criterion in force
OTRO · intermediación en línea

Online intermediation with underlying transactions exempt from tax if conducted between 100% owned entities

A non-resident company has queried whether its digital interface service for vehicle trading is subject to the Digital Services Tax. The DGT has determined that, as the intermediary owns 100% of the entity performing the underlying transaction, the service is not subject to the tax.

The DGT's ruling

Online intermediation services with an underlying transaction are those that facilitate the delivery of goods or services through a digital interface. However, the provision of digital services is not subject to tax when carried out between entities that are part of a group with a direct or indirect shareholding of 100 percent. In this case, as there is total identity between the parties, the transaction is considered internal.

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