Spain reduces VAT rate on eBooks and other ePublications to 4%

Spanish Official Gazette (Boletin Oficial del Estado) in today’s publication introduces important changes to VAT on ePublications, such as eBooks, eNewspapers and eMagazines that will come into force as of tomorrow.

The measure will affect ePublications which will be subject to a VAT reduce rate of 4% and will be implemented as soon as tomorrow 23rd April 2020. Previously, these types of electronic publications were subject to the 21% standard VAT rate.

Unofficial translation
2. Books, newspapers and magazines, even when they are considered services provided electronically, that do not contain solely or fundamentally advertising and do not consist entirely or predominantly of video or audible music content, as well as the complementary elements that are delivered together with those by a single price. Executions of work that immediately result in obtaining a book, newspaper or magazine in sheet or in continuous, of a photolith of said goods or that consist of the binding of the same.
For these purposes, the tapes, discs, videocassettes and other similar sound or video-magnetic supports that constitute a functional unit with the book, newspaper or magazine, will be considered as complementary elements

Global VAT Compliance specializes in helping international business be VAT compliant around the world offering VAT solutions to Digital Companies, so if you can foresee these developments impacting your business, do not hesitate to contact us.

If you want to check the latest VAT rates on eBooks, click here.

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