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V2770-14 14 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

VAT localization in electronic software maintenance services to clients in Melilla

An IT company has requested clarification on whether providing software maintenance via remote control to a client in Melilla is subject to Spanish VAT. The DGT has ruled that, as this constitutes a service provided by electronic means, the place of supply depends on whether the recipient is a taxable person or not.

The question raised

Place of performance.

The DGT's ruling

Remote maintenance of programs is classified as a service provided by electronic means. If the recipient is a business or professional with a registered office or establishment in Melilla, the service is not understood to be performed within the territory of application of the Tax. However, if the recipient is not a business, the service shall be understood to be performed within the territory of application of the Tax provided that the provider is established therein. Legal entities with a VAT identification number supplied by the Spanish Administration are considered businesses.

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