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V2594-21 25 October 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · servicios prestados por vía electrónica

Electronic video supply services to an Irish company are not subject to VAT

A self-employed individual inquires about the VAT and Income Tax (IRPF) treatment of income earned from uploading videos to a platform in Ireland. The Directorate General for Taxes (DGT) determines that the transaction is not subject to VAT due to place of supply rules and analyses the classification of the earnings for Income Tax purposes.

The question raised

1.) Taxation for Value Added Tax purposes regarding the aforementioned activity, as well as the inclusion of the applicant in the Intra-Community Register of operators as a consequence thereof.

The DGT's ruling

The supply of audiovisual content by electronic means to a taxable person in Ireland constitutes an intra-Community supply of services not subject to VAT in Spain. The provider must register in the ROI to obtain a VAT number and issue an invoice containing the mention "reverse charge". For Personal Income Tax purposes, income from intellectual property may be classified as employment income, professional activity income, or business income depending on the organization of the means of production.

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