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V2741-18 16 October 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

VAT exemption for electronic video services provided to business customers in the EU or third countries

A taxpayer queried whether the delivery of videos via internet platforms (one based in the EU and another in the USA) is subject to VAT. The Directorate General for Taxes (DGT) ruled that, as these are electronic services provided to business customers, the transaction is not considered to take place within the scope of the tax.

The question raised

Subjectivity to Value Added Tax. Inclusion in the Intra-Community Register of Operators.

The DGT's ruling

Video supply services provided electronically to a taxable person established in the European Union or in a third country are not subject to VAT in Spain. To apply the effective use and enjoyment clause, the service must be used by the recipient in the course of transactions subject to tax in Spanish territory. In this case, as the client is a taxable person abroad, the requirements for taxation are not met.

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