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V4321-16 6 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Cash withdrawal fees are exempt from VAT, but the use of software applications is not

A query was raised regarding whether fees for cash withdrawal services and the use of a software application for payments are subject to or exempt from VAT. The DGT has determined that cash withdrawal is an exempt financial service, whereas the use of the application constitutes an independent service subject to VAT.

The question raised

Whether the fees paid for the cash withdrawal service are subject to and exempt from Tax.

The DGT's ruling

Cash withdrawal services are financial in nature and are exempt from VAT pursuant to Article 20.One.18) h) of Law 37/1992. However, the fee for the use of a computer application to make payments is neither a financial transaction nor a payment instrument issuance service. This fee is not ancillary to the payment service, but rather an independent provision that must be subject to, and not exempt from, VAT.

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