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V3269-17 21 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · compensación equitativa

Digital levy must be included in the VAT taxable base for the sale of equipment and media

A query was raised regarding whether the private copying levy (digital levy) should be integrated into the VAT taxable base. The DGT ruled that, although the collection of the levy does not constitute a service subject to VAT provided by the authors, it does form part of the taxable base for the sale of the equipment, as it represents a credit in favour of the seller.

The question raised

Inclusion of the aforementioned levy in the tax base of Value Added Tax.

The DGT's ruling

The amounts received by authors do not constitute a service provision subject to VAT. However, the private copying levy must be included in the tax base of the sale or assignment of use of the equipment, as it constitutes an effective credit in favor of the party performing the operation. Therefore, VAT must be charged on the total amount including said levy.

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