Directorate of Taxes issues a tax ruling that analyzes the VAT treatment of the services rendered by a social network considering that the consideration received is the user’s data

The user did not intend to carry out an economic activity or carry out the organization of means characteristic of said activity. Therefore, the transfer of data does not constitute an economic activity for VAT and it is not a taxable supply of services.

In connection with the second point, i.e., the supply of electronic services in exchange for the user’s data, it concluded that the social network offers its services in the same way regardless of the amount of data provided by users or their quality.

Source: bakermckenzie.com

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