21% VAT on Kit Digital digitizing agent services

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding Value Added Tax (IVA) taxation within the framework of the Kit Digital program. The inquiry focused on determining whether services provided by a digitizing agent should be exempt from VAT when the end client performs activities that are both taxable and exempt without the right to deduction.

What the DGT has ruled

The body has ruled that services provided by an entrepreneur or professional acting as a digitizing agent are subject to VAT. According to the resolution, these operations do not benefit from any specific exemption under current regulations. Therefore, the agent must charge the general rate of 21%.

A key point of the ruling is that the determination of the tax rate for the operation depends exclusively on the classification of the service provided by the agent. The nature of the activity carried out by the service acquirer, such as a healthcare professional with limitations on their right to deduction, does not alter the taxable nature of the digitizing agent's provision.

What it means for you

For companies and professionals acting as digitizing agents, this ruling eliminates ambiguity regarding the invoicing of their services. The obligation to apply the 21% rate is direct, regardless of whether the client is a company with the right to deduction or a professional whose activity does not allow them to recover said tax.

For Kit Digital beneficiaries, this implies that the cost of the digitization service will always include VAT at the general rate, which must be taken into account when managing costs and applying for the corresponding grants.

What you should do

It is necessary for digitizing agents to adjust their invoicing processes to ensure the correct application of the 21% tax rate. Likewise, companies contracting these services should verify the correct issuance of invoices to avoid contingencies in their VAT returns. Since the application of the tax depends on the nature of the service and not on the client, it is recommended to analyze each contract under the regulations of Law 37/1992.