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V3081-20 14 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · recargo de equivalencia

Sale of computers with pre-installed software subject to standard VAT regime

A professional has enquired whether selling computers with operating systems or applications pre-installed allows for the application of the equivalence surcharge regime. The Directorate-General for Taxes (DGT) has ruled that such installation is considered a transformation process, which requires these products to be taxed under the standard VAT regime.

The question raised

Applicable regime in Value Added Tax to the activity of selling computers in the cited cases.

The DGT's ruling

The installation of operating systems, applications, or contacts is not considered an excepted operation of transformation. Therefore, the seller performing these tasks is not a retail trader with respect to those computers. In this case, the activity of selling transformed equipment shall be taxed under the general VAT regime. However, the equivalence surcharge may be applied to other products sold in the same state in which they were acquired.

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