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V3649-20 29 December 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

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

A publisher has requested clarification on whether its digital products (virtual libraries, databases, and premium services) and commissioned works can benefit from the 4% reduced VAT rate. The DGT has ruled that e-books and the streaming of publications are subject to the 4% rate, whereas databases and consultancy services are subject to the standard 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 execution of works, for the purposes of Value Added Tax

The DGT's ruling

The supply of e-books and access via streaming are taxed at 4% if they meet the requirements of a book. Legal databases are taxed at 21% as they do not qualify as books. In bundles with a single price, each service is taxed according to its own nature. The execution of works is taxed at 4% only if it results immediately in a book, newspaper, or magazine.

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