Electronic Commerce and Indirect Taxation in Spain

Electronic commerce transactions are subject to an indirect consumption tax, namely, value added tax. In Spain, the key issues in this area are: (1) the place of supply of the electronic commerce transactions; (2) the application of the special regime for electronically supplied services; (3) the rates applicable to such electronically supplied services; and (4) the regulation of invoices by electronic means. This article addresses these issues in light of EU regulations and their incorporation into Spanish law.