Is Kit Digital a Scam? Myths, Cons and Trustworthy Providers

Is Kit Digital really a scam?

In recent months there have been circulating accusations that Kit Digital is a “scam” – the Spanish government grant for the digitalisation of SMEs and self-employed professionals. Many potential beneficiaries have been confused or wary because of myths about paying VAT (IVA), dubious offers such as the famous “free computer”, and various bad practices by some providers that have tarnished the programme’s reputation.

The truth is that Kit Digital, properly understood and managed, is not a scam or a con: it is a real grant co-financed by European funds to drive digital transformation. However, as with any wide-reaching initiative, misunderstandings and cases of malpractice have arisen that are worth clearing up. Below we dismantle the main myths and misconceptions around the idea that Kit Digital is a scam and explain how it really works, also highlighting examples of good management and how to choose a trustworthy digitalising agent so you can make use of this grant transparently and without surprises.

Kit Digital is a scam because they make me pay VAT

One of the most widespread myths is the belief that Kit Digital covers 100% of the costs and that the beneficiary does not have to pay anything, not even VAT. That is not quite the case, and it has led some people to talk about a “scam” when faced with an unexpected VAT invoice. Let’s look at the reality:

VAT is not covered by the grant:

The Kit Digital voucher finances the taxable base of the digital solutions contracted, but does not include VAT, which must be borne by the beneficiary. For example, if a solution valued at €2,000 is implemented, the grant covers that net amount, but the self-employed professional or company must pay the 21% VAT (€420) out of their own pocket. Important: this is not a trick, it is how any public grant normally works – indirect taxes are not subsidised.

VAT can be recovered (in most cases):

Although you have to pay the VAT upfront, for VAT-registered businesses this is not a real cost in the medium term, since they can deduct that input VAT in their quarterly return.

In other words, they do pay the VAT when contracting the Kit Digital solution, but then offset it with the tax authority as they would with any expense invoice. There is no financial loss, just a temporary cash-flow effect. So where does the complaint come from? Mainly from self-employed professionals under the special regime (recargo de equivalencia, the equivalence surcharge) or in VAT-exempt sectors, who cannot deduct it; for them those €420 are indeed a definitive cost.

“VAT-free” by contracting companies in the Canary Islands? Beware of that myth:

Another idea that has been circulating is that of avoiding VAT by contracting a digitalising agent in the Canary Islands, since the islands apply IGIC (the Canary Islands General Indirect Tax) and transactions to the mainland can be invoiced without VAT. This does not mean the service is cheaper or that VAT magically disappears. In reality, if a mainland beneficiary contracts a Canary Islands agency, the invoice may come without VAT, but the client will have to self-assess that tax through the reverse-charge mechanism in their return.

In practice, there is no real VAT saving for anyone who normally deducts it. And for those who cannot deduct it, it would still be a cost (they would have to pay that VAT as a non-taxable transaction). Therefore, there is no legal “trick” to get Kit Digital VAT-free. Any proposal that promises “no VAT” may involve tax risks or is simply a misunderstanding.

In short, paying VAT on Kit Digital solutions is mandatory and normal, but it does not turn the grant into a con. It is important for the digitalising agent to explain this clearly from the outset so the beneficiary gets no surprises. If you are properly informed, you will know that the only outlay you will make is the VAT, recoverable in many cases, and you will not feel you have been cheated. Transparency on this point is key to building trust.

Kit Digital is a scam because they don’t give me a free computer

Another controversy that has led to Kit Digital being accused of being a scam is the famous “free computer” (or mobile phone) offered to self-employed professionals and small businesses through the new Secure Workstation (Puesto de Trabajo Seguro) category. This initiative, launched in mid-2024 with an additional €1,000 voucher, was advertised as the chance to get IT equipment at no cost. Is that true? The small print reveals a different reality:

It is not a purchase, it is a lease with an option to buy:

When you take up the “free computer”, **the equipment is not really yours from day one. The grant works under a technology leasing system: the digitalising agent provides you with a computer (or laptop, or equivalent kit) for your use, but retains legal ownership for at least one year.

In other words, the beneficiary company rents the equipment for 12 months, after which it has two options: return it at no additional cost, or keep it by paying a residual amount.

Residual payment, plus VAT:

If after that year you want to keep the computer, you must pay 15% of the subsidised value as a purchase option. For €1,000 worth of equipment that means an additional €150. And moreover, that amount also carries VAT, so the final cost of keeping the equipment would exceed €180 (€150 + 21% VAT). On top of this, from the start you had to pay upfront the VAT on the €1,000 voucher, that is, €210 out of your own pocket as soon as the grant was formalised.

So although you initially pay nothing for the equipment (because the grant covers it), you do pay €210 in VAT upfront, and after a year, if you want to keep it, you would pay around €180 more. In total, about €390 between VAT and the purchase option to own that “€1,000 computer”.

Entry-level equipment and mandatory conditions:

Another factor to bear in mind is that these devices come with requirements attached. For example, they must include an official Windows licence, antivirus, encryption, etc. within the budget. All those extras eat into part of the voucher, so the real value of the hardware is usually around €400 or less. This means the “free” computer will probably be a basic model, good enough for office work but a long way from high-performance machines. In addition, you cannot choose freely; you have to stick to the pre-configured models that meet the programme’s specifications.

Reported delivery problems:

Since the digitalising agent is the one who buys and supplies the equipment (with the promise of state reimbursement), there have been cases of delays or failures to deliver. In fact, some beneficiaries paid those €210 of VAT upfront and were left waiting for the computer longer than expected. Some agents, faced with the logistical and financial complications, chose not to offer this grant at all, leaving interested SMEs with no easy way of obtaining the equipment.

Mandatory support from the agent:

Let’s not forget that the “secure workstation” is not just a matter of handing over the device and that’s it. The digitalising agent takes on the obligation of support and maintenance for 12 months (it must guarantee assistance Monday to Friday, repair or replacement in case of breakdown, etc.). This, while positive for the user in principle, is an additional burden for the provider. Many small agents cannot advance the money for the equipment or cover that intensive after-sales service, so they decline to process this category. Those that do offer it may be doing so at the cost of overstretching themselves.

Given all the above, it is clear that the “free computer” is not as neat as it sounds. In reality, there is little that is free about it: VAT is always paid (from day one) and you end up paying for part of the equipment if you keep it. In addition, the value of the device is limited and there are conditions to meet.

Ultimately, it is not that Kit Digital sets out to deceive, but incomplete communication or naive marketing created false expectations. The lesson here is to read the conditions carefully and get advice from someone you trust before jumping at the “bargain” of a free computer.

Bad practices that have given Kit Digital its reputation as a scam

Much of the bad reputation Kit Digital has acquired in certain circles does not come from the programme itself, but from how some intermediaries or “digitalising agents” have behaved. Remember that beneficiary SMEs do not receive the money directly; they must redeem their voucher by contracting services from accredited agents. The quality and honesty of those agents is fundamental. Unfortunately, not all of them have played fair, and that has led to talk of fraud or scams in some cases. What bad practices have been detected?

Services outside the grant:

The Ministry warned as early as 2022 that some agents were offering services not included in the 12 Kit Digital categories and trying to slip them into projects. This is completely irregular (the voucher can only be spent on accredited solutions). For example, some tried to include advertising costs, purchases of software not covered, or other unrelated items. These practices breach the rules and amount to fraud against the programme, harming the client (who could be forced to repay the grant if the irregularity is discovered).

Low-quality or incomplete services:

Linked to the above, when all that matters is grabbing as many vouchers as possible, quality can suffer. It has happened with “production-line” website development: some companies have churned out websites, delivering the bare minimum to justify the grant. In many cases they do not even include the client’s own domain or hosting in the package (which later forces the client to pay for them separately), or they register the domain in the agent’s name rather than the client’s, which is extremely serious. The client, happy at first to have a “free website”, discovers months later that the site brings in no customers and does not improve the business, being left only with the annual hosting cost and the doubly bitter taste of having “used up” €2,000 of grant on something of little value.

Client lock-in and hidden sales

Another bad practice has been “tying” the client in order to charge them later. Some providers promised the earth with Kit Digital, but in the small print required the client to contract additional services once the first subsidised year was over. For example, compulsory paid maintenance, domain renewals at inflated prices, separate SEO plans, etc. Besides being unethical, this goes against the rules (the grant cannot be made conditional on buying future services or commit the beneficiary beyond the 12 months). There have also been cases of ghost digitalising agents: companies that offered to process the grant, charged an advance or the full amount of the grant and then disappeared without doing the work. In fact, there have been criminal complaints for fraud where the beneficiary company was left without a digital solution and with its money lost. Red.es has warned that, in the event of any serious breach, repayment of the funds will be demanded and penalties may be imposed on fraudsters.

All these situations have done a great deal of damage to Kit Digital’s image. On social media and forums it is easy to find people saying “it’s a rip-off, they took me for a ride” because, unfortunately, there were opportunistic providers who went for the quick win instead of delivering real value. That said, we cannot generalise: alongside those negative cases, there are thousands of satisfied SMEs with the solutions they obtained and many digitalising companies doing honest work.

The key is to choose the digitalising agent well. As an official communication put it, “it is very important to choose carefully the digitalising agent we want to implement the solution for us, since our confidence in their work will guarantee a higher success rate”.

Good practices that ensure Kit Digital is not a scam

Despite the abuses mentioned, most accredited companies are doing things properly. Let’s not forget that, as of today, Red.es has granted close to 485,000 Kit Digital grants, worth 2,000 million euros. Behind those figures are tens of thousands of SMEs that have built their website, their online shop, implemented a CRM or improved their cybersecurity thanks to the programme. Many have been satisfied and have paid only the corresponding VAT, with nothing untoward happening.

What characterises good management of Kit Digital? We can summarise some good practices that trustworthy digitalising agents follow:

Total transparency from the outset

A reliable agent clearly informs the client about exactly what the subsidised service includes, what the grant does not cover and what payments the client will have to bear (for example VAT, or any difference if the project exceeds the voucher). Everything is set out in writing in quotes and contracts. That way the client knows what they are going to get and on what terms, avoiding misunderstandings.

Fitting the project to the client’s real needs:

Rather than forcing a standard product or maximising the amount for no reason, good companies analyse which solution suits each SME best within the Kit Digital categories. For example, if a micro-enterprise has no website, it may be best to put the voucher towards building an effective site, even if not all the money is spent, and it does not matter if it is not used down to the last cent. Or conversely, if a €2,000 website voucher can also include a year of hosting, maintenance or basic SEO, they do so, adding value instead of delivering the minimum. The philosophy is to use the grant so that the client’s business genuinely improves, in keeping with the spirit of the programme.

Quality in execution and complete delivery:

A responsible agent does not cut corners. Even though it is subsidised, it performs the service with the same care as if the client were paying directly. It delivers well-designed, fast, optimised websites, functional online shops with training provided, software correctly installed and configured, etc. It also includes all the necessary elements (for example, domain in the client’s name, email accounts set up, user tutorials, technical support during the mandatory maintenance year, etc.). In short, it delivers what was promised and a bit more, so the client is satisfied and willing to keep working with that company in future out of trust.

No tricks or forced dependency:

A big difference with good providers is that they do not “trap” the client. They fulfil the 12 months of service the grant requires, but do not impose additional lock-in periods. If after that period the client wants to continue with improvements or maintenance, it will be because of the good experience, not because they were tied in by hidden clauses. Likewise, they do not charge any non-subsidised extra without clearly agreeing it. When the project ends, the website, shop or system implemented belongs to the client, with its access credentials and ownership, and the agency cannot withhold anything. This brings peace of mind: the SME does not feel cheated, but helped.

Close communication and support:

Another good practice is to accompany the client. Serious companies answer questions about justifying the project, advise on the documentation to be submitted to Red.es, and are generally available for any issue during the subsidised year. At the end, many even offer training or advice so the client can get the most out of the solution implemented. This support makes a difference, compared with others who simply “take the money and forget about you”.

By following these guidelines, Kit Digital does deliver on its promise. In fact, numerous success stories prove it – small businesses that thanks to the voucher launched their first e-commerce site, or digitalised their customer management, saving time and winning customers.

In essence, a good digitalising agent behaves more like a partner than an occasional salesperson. Its goal is not just to “collect the grant”, but to make the digital project work, because it knows that will reflect on its reputation and possibly lead to a lasting business relationship.

Fortunately, there are many companies that fit this trustworthy profile.

Impactiq: transparency and trust in managing Kit Digital

We are among the accredited companies. Impactiq, S.L. is listed in the official catalogue of digitalising agents (Acelera Pyme) and is accredited to offer solutions in E-commerce, Customer Management (CRM) and Business Intelligence, among others.

What makes Impactiq different? Mainly, our commitment to transparency and quality of service. Some features of our approach are:

Clear information with no small print

From the first contact, Impactiq explains to the client how Kit Digital works and details what the project will include. Aspects such as the beneficiary paying the VAT, delivery timescales, or the 12-month maintenance obligations are communicated openly. This way, the SMEs that work with us understand perfectly what they will receive and what they will have to contribute, avoiding common misunderstandings. This “no surprises” policy builds trust from the start.

Experience and specialisation:

At Impactiq we have a team of professionals with experience in the digital market. They are not improvisers; they are specialists in web development, e-commerce, digital marketing and systems, with prior track records. We also serve all areas of Spain (Madrid, Barcelona, Girona and the Canary Islands), which allows us to serve clients in different regions with a local touch. Our geographic reach, including the Canary Islands, also helps us understand tax particularities (such as IGIC) where they apply, adding consultative value for clients on the islands or the mainland.

Leading technology partners:

Unlike agents that operate in isolation, Impactiq has established alliances with suppliers. We are an official partner of Holded, Clientify and Iubenda. This means that the solutions we implement (whether an e-commerce platform, a CRM, an analytics tool, etc.) are first-rate and backed by the support of recognised vendors. The client thus gets reliable, up-to-date, scalable products, instead of home-made developments of doubtful continuity.

100% turnkey project:

When you hire Impactiq for your Kit Digital, you will not have to worry about anything technical or bureaucratic. We handle all the paperwork for applying for and justifying the grant, keeping you informed of progress. On the delivery side, we cover the contracted solution in full: for example, if it is a website, that includes custom design, basic SEO optimisation, hosting/server configuration, security (SSL certificate, GDPR), initial content… right up to leaving it published and working. We will not ask you for extra payments for essential elements, nor will you be handed something half-finished.

Post-implementation support and guidance:

Another sign of our commitment is ongoing support. During the 12 months required by Red.es, at Impactiq we provide direct customer service, with technical staff available to resolve issues or questions. We also offer basic training so the client knows how to use the new tools (for example, managing their online shop or interpreting BI reports). This specialist attention guarantees that the SME gets real value from the solution and does not feel abandoned after delivery. At the end of the subsidised period, we do not impose any compulsory renewal: the client is free to carry on alone or to contract additional services only if they wish. Many decide to keep working with us because of the good experience, but without feeling any sales pressure, simply because they value a job well done.

In summary, at Impactiq we set ourselves apart by offering a transparent, reliable service focused on the client’s success. In the face of the cons and myths that have emerged, initiatives like this show that a well-managed Kit Digital is not a scam. When you have a trustworthy digitalising agent, the grant translates into tangible improvements for your business, with no shocks or hidden costs.

If you are considering applying for Kit Digital or have doubts after the “scam” stories doing the rounds, get advice from professionals like us. You will have the peace of mind of ethical, effective management, and you will be able to take advantage of this digitalisation opportunity safely.

Official source: acelerapyme.gob.es