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Localization Rule: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 12 rulings · 2016–2024

Current position

Services provided electronically must be basically automated and require minimal human intervention. For services that are not electronic, such as customer service, the general localization rule applies. For services provided to non-resident recipients, the rule of effective use and exploitation may apply if the service is used in Spain to carry out transactions subject to tax.

The DGT has maintained a consistent application of the general localization rule for non-electronic services. The evolution focuses on the precision of the rule of effective use and exploitation, requiring a case-by-case analysis to determine the extent of use. Likewise, it has more rigorously delimited which services qualify as being provided electronically.

Turning points

  1. V0529-19

    Establishes that in cases of partial use of the service, the extent of use must be determined based on the proportion of income from transactions subject to tax in Spain relative to the total.

  2. V2145-24

    Defines that to be an electronic service, it must be basically automated and require minimal human intervention, excluding telephone assistance.

Analysis based on 12 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12

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