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V2816-14 20 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 4% VAT rate applies to printing and binding services for books or magazines not primarily containing advertising

A printing and binding company has requested clarification on the VAT rate applicable to its final products. The DGT has determined that if books or magazines do not consist primarily of advertising, the printing or binding service is subject to the 4% reduced rate.

The question raised

Applicable tax rate.

The DGT's ruling

The reduced rate of 4% applies to works of construction resulting in the production of a book, newspaper or magazine, or consisting of their binding, provided they do not contain advertising as their sole or fundamental content. They are understood to contain advertising as their fundamental content when more than 75% of the publisher's income derives from this concept. Conversely, if the content is fundamentally advertising or if it concerns photographic developing, the general rate of 21% shall apply.

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