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V2678-19 1 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · gestión de cobro

Electronic payment gateway management services are subject to VAT

An e-commerce company sought clarification on whether its payment gateway service, which manages income and retains a commission without assuming non-payment risks, was exempt from VAT. The DGT ruled that, because no risks are assumed, the activity constitutes payment collection management and is therefore subject to VAT.

The question raised

Liability for Value Added Tax regarding the collection management activity carried out by the applicant.

The DGT's ruling

The activity of managing payments through an electronic system, receiving income from clients and subsequently transferring it to the holder after retaining a commission, is considered collection management if the entity does not assume the risk derived from the operation. Following the AXA ruling of the CJEU, this service is an activity subject to VAT and not an exempt operation. Services provided to entrepreneurs in Spain are subject to the tax, whereas services provided to entrepreneurs in the European Union shall not be subject to VAT.

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