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V3398-20 23 November 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

4% VAT rate applies to databases providing full access to books or journals, but not to those with heterogeneous information

A publishing management company sought clarification on the VAT rate applicable to its databases containing full texts, abstracts, and other content. The DGT ruled that the reduced 4% rate only applies if the database functions as a virtual library for accessing complete books or journals, whereas other content is subject to the standard 21% rate.

The question raised

Tax rate applicable to Value Added Tax on the sale of said products.

The DGT's ruling

The reduced rate of 4% is applicable to the supply of books, newspapers, and magazines, including electronic services that allow their reading (such as streaming). Databases that allow direct and full access to these publications assimilate their nature to that of virtual libraries and may benefit from the 4% rate. However, databases that offer heterogeneous information (studies, reports, news) or only summaries and indexing are taxed at the general rate of 21%. The assignment of an ISBN is considered an indication to regard a publication as a book.

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