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V3090-16 4 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Sale of software licences and remote maintenance to a Mexican company is not subject to VAT

A company has requested clarification regarding the location of the sale of software licences and remote maintenance services to a client in Mexico. The DGT has determined that, as the recipient is a foreign entity, the transaction is not subject to Spanish VAT.

The question raised

Location of said services.

The DGT's ruling

The sale of licenses and remote maintenance are considered services provided by electronic means. These services are located within the territory of application of the Tax when the recipient is established in Spain. As the recipient is a Mexican entity, the provision of services for the sale of licenses and their remote maintenance is not subject to VAT. Said operations must be reported in Form 303 (box for non-taxable operations) and in Form 390 (box for operations not subject due to rules of location).

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