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V2970-23 14 November 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · cesión de derechos de explotación

Copyright transfers by writers to US platforms are not subject to VAT

An IT article writer enquired whether the transfer of their exploitation rights to a US-based platform was subject to or exempt from VAT. The DGT ruled that, as the recipient is a professional based in a third country without an establishment in Spain, the transaction is not subject to the tax.

The question raised

Whether the assignment of exploitation rights of the articles by the taxpayer to the platform is subject to, and if applicable, exempt from, Value Added Tax.

The DGT's ruling

The assignment of copyrights constitutes a provision of services which, provided the requirements of authorship and originality are met, would be exempt from VAT. However, as the service is destined for an entrepreneur or professional established in a third country (United States) without a permanent establishment in Spain, the provision is not considered to have taken place within the territory to which the tax applies. Therefore, the transaction is not subject to VAT.

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