The magazine Entrepreneurs has published in its October edition and within its legal and tax guide, a news item on the problems generated by VAT on services provided electronically. To analyze this issue, they have requested the opinion of several experts; among them, our partner responsible for the Tax Area, Miguel Angel Molina. This is his analysis:
Law 37/1992 on VAT (LIVA) determines the services that can be considered provided electronically, but it is not a closed relationship. Therefore, it must be considered 2006 / 112 / CE Directive, which includes the concept of "electronically provided services" and is a regulatory source to regulate the growing influence of electronic commerce. And also Council Implementing Regulation 282/2011, of March 15, 2011, which regulates which services are understood to be carried out electronically.
In addition to the problem of the definition of electronic service, we must keep in mind the location rule of article 70.One.4 of the LIVA, which considers the services of resident businessmen or professionals to be provided in the territory of application of the tax (TAI) when the recipient is not a businessman or professional (individual) and the amount exceeds €10.000 for intra-community operations.
It is important to take into account services that are not considered provided electronically (telecommunications services, television, CDs, etc.). And also the recent reform included in the General State Budget Law for 2023, which has excluded electronic services from the effective use clause provided for in the LIVA.
