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V2875-20 23 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Reduced VAT rate of 4% applies to the supply of books in digital or physical format

The taxpayer queried whether the acquisition of content for training courses via electronic means is subject to a 4% VAT rate. The DGT ruled that books, including electronic ones, are taxed at 4%, whereas content creation services that do not constitute books are subject to the 21% rate.

The question raised

Application of the 4 percent Value Added Tax rate to the electronic acquisition of course material.

The DGT's ruling

Books, regardless of whether they are supplied in physical or digital format, are taxed at the 4% tax rate provided they do not consist primarily of advertising or video or music content. However, content creation services for consultation purposes that do not involve the supply of a book are taxed at the general rate of 21%.

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