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V3103-23 28 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · servicios prestados por vía electrónica

An influencer's streaming services are not subject to VAT if the client resides in the USA

A content creator inquires about the VAT and Income Tax (IRPF) treatment of income received from a US-based platform. The Tax Agency determines that the transaction is not subject to VAT due to the customer's location and that there is no obligation to withhold Income Tax because the platform is not a taxable person in Spain.

The question raised

Taxation regarding VAT and Personal Income Tax (withholding on invoice).

The DGT's ruling

The supply of videos via an internet platform is considered a service provided by electronic means. As the recipient is located in the USA and does not have a permanent establishment in Spain, the transaction is not subject to VAT. Regarding Personal Income Tax (IRPF), the US platform is not a withholding agent as it does not operate in Spain, therefore the obligation to perform withholding does not arise.

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