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V2563-23 26 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · servicios prestados por vía electrónica

E-book sales via platforms may be exempt from VAT if the customer is a foreign entity

A self-employed author has requested a ruling regarding VAT liability and the invoicing of royalties from novel sales on a digital platform. The DGT has determined that, as the customer is a US-based company, the transaction is not subject to VAT, and further analyses the classification of this income for Personal Income Tax (IRPF) purposes.

The question raised

Liability for VAT and invoicing obligations.

The DGT's ruling

The sale of e-books is a service provided by electronic means. If the platform acts in its own name, it is the taxable person towards the customers. As the customer is located in the USA, the transaction is not subject to VAT. The author must issue an invoice, although the platform may materially fulfill this obligation through a prior agreement. For Personal Income Tax (IRPF) purposes, the self-publishing of books is classified as income from economic activities.

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