Spain - Tax Treatment of Live Services

The Spanish Tax Agency (TA) has issued an official answer concerning the taxation of a service consisting of retransmitting live events for viewing through an online platform. The Spanish TA uses this practice frequently, and these answers provide valuable sources of information to all parties to which these rules apply.

Tax Authority Interpretation

The Spanish TA concludes that the service of live event streaming through an online platform is considered an electronically provided service. This conclusion is preceded by the opinion that when an online platform facilitates the distribution of viewing acts on behalf of purchasers, it is considered to have received and provided the services.

According to Article 9a of Implementing Regulation 282/2011 (EU), the digital platform operator becomes a supplier when services are delivered electronically through a telecommunications network, interface, or portal. This presumption holds unless the provider is explicitly acknowledged as such by the taxable person, and this recognition is documented in the contractual agreements between the parties.

In addition, the services supplied to the platform will be considered located within the Spanish tax territory if the platform has its headquarters, a permanent establishment, or, in the absence of these, its usual residence or domicile in that area, provided that the services are directed to said headquarters, establishment, residence, or domicile.

Conclusion

In summary, the online platforms that facilitate the distribution of viewing services are deemed to be the recipients and providers of these services when acting on behalf of purchasers. This provides clarity for service providers and ensures alignment with the principles set out in Article 9a of Implementing Regulation 282/2011 (EU).

Businesses retransmitting live events via online platforms should carefully review their contractual arrangements and operational locations to ensure compliance with these tax rules.

Source: Spanish Tax Agency, Implementing Regulation (EU) No 282/2011