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V3120-16 5 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Web-based advertising services classified as advertising rather than electronic services

A software and advertising company sought clarification on whether its web-based advertising services qualified as services provided by electronic means. The DGT has determined that these are advertising services and that their location depends on the recipient's registered office.

The question raised

Place of performance of the transactions carried out.

The DGT's ruling

Advertising services must be classified as such regardless of whether they are carried out by electronic or telematic means. If the recipient is a business or professional with a registered office or permanent establishment in Spain, the transaction is located in Spanish territory and is subject to VAT. If the recipient is a business from another Member State without an establishment in Spain, the transaction shall not be subject to VAT.

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