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V3480-20 2 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · prestación de servicios

Receipt of 85% of net revenue from televoting services is subject to 21% VAT

A public entity consulted whether the collection of its share of profits (85% of net revenue) from a televoting system was subject to VAT. The DGT has determined that this constitutes a provision of services for consideration, which is subject to the tax.

The question raised

Whether the receipt by the consultant of its share of the profit (85 percent of the net income obtained by the collaborator) would be subject to Value Added Tax and, if applicable, the taxable base of said transaction.

The DGT's ruling

The transaction constitutes a provision of services by the consultant to the collaborating entity for consideration. Said provision is subject to VAT at the general tax rate of 21%. The taxable base shall be the amount of the consideration received by the consultant, which in this case is 85% of the net income obtained by the collaborating entity.

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