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V2642-20 13 August 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · uso y explotación efectivos

Advertising advisory services for a gaming operator in Ceuta may be subject to VAT if effectively used in Spanish territory

A company has requested a ruling on whether its advisory services for contracting advertising on behalf of a gaming operator in Ceuta are subject to VAT. The DGT has determined that, although the recipient is located in Ceuta, the rule of effective use and exploitation will apply if the service is used to carry out transactions subject to tax within Spanish territory.

The question raised

Whether said provision of services would be subject to Value Added Tax.

The DGT's ruling

Advertising and advisory services provided to a gaming operator in Ceuta shall be subject to VAT if their effective use or exploitation takes place in Spanish territory. This occurs when the operator uses said services to carry out transactions subject to the tax in the territory of application, regardless of whether such transactions are exempt. The rule of effective use and exploitation of Article 70.Two of Law 37/1992 applies, considering that online gaming activities are services provided by electronic means.

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