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V3648-20 29 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

4% reduced rate applies to e-books and streaming, but not to legal databases

A publisher has requested clarification on the VAT rate applicable to digital books, magazines, online libraries, and the performance of works. The DGT has ruled that digital books and magazines are subject to the 4% rate, including streaming, whereas legal databases are subject to the 21% rate.

The question raised

Application of the reduced tax rate of 4 percent to the products marketed by the consulting entity, as well as to the contracted works executed, for the purposes of Value Added Tax

The DGT's ruling

The supply of books, newspapers, and magazines via electronic means (download or streaming) is taxed at 4%. Legal databases that allow direct access to external information (judgments, resolutions) are taxed at 21%. In combined sales (DUO), if the digital content is a database, they are considered independent operations with different rates. Works executed resulting in a book, newspaper, or magazine are taxed at 4%, but intermediate processes such as layout are taxed at 21%.

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