Doctrine by topic · DGT Observatory

Software: 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

Stable position Medium confidence 8 rulings · 2015–2020

Current position

The licensing of software together with installation or configuration services is considered a single provision of services. In the context of international treaties, payments for the use of programs may be classified as royalties, although their taxation in Spain depends on the existence of a permanent establishment. The distinction between standard and customized software is a matter of fact that determines the classification of the income.

The DGT's position is heterogeneous because the rulings address different aspects: VAT (IVA), Corporate Income Tax (IS), and international treaties. There is no single doctrinal evolution, but rather an application of specific criteria for each case, such as the accessibility of services or the classification of royalties according to the applicable treaty.

Turning points

  1. V3444-16

    Establishes that the distribution of standardized computer applications that do not involve the right of adaptation or reproduction is excluded from being classified as a royalty.

  2. V4794-16

    Specifies that the reduction for the transfer of know-how does not apply if the income does not derive from the autonomous transfer of basic ideas and principles, such as algorithms or techniques.

Analysis based on 7 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8

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