diff --git a/lib/datadog/tracing/tracer.rb b/lib/datadog/tracing/tracer.rb
index d31418f0406..a6da0e98199 100644
--- a/lib/datadog/tracing/tracer.rb
+++ b/lib/datadog/tracing/tracer.rb
@@ -442,7 +442,7 @@ def resolve_tags(tags, service)
                         tags || @tags.dup
                       end
         # Remove version tag if service is not the default service
-        if merged_tags.key?(Core::Environment::Ext::TAG_VERSION) && service != @default_service
+        if merged_tags.key?(Core::Environment::Ext::TAG_VERSION) && service && service != @default_service
           merged_tags.delete(Core::Environment::Ext::TAG_VERSION)
         end
         merged_tags
diff --git a/spec/datadog/tracing/tracer_spec.rb b/spec/datadog/tracing/tracer_spec.rb
index ed0b8de2b99..945b3884e25 100644
--- a/spec/datadog/tracing/tracer_spec.rb
+++ b/spec/datadog/tracing/tracer_spec.rb
@@ -126,15 +126,45 @@
             expect(span.get_tag('my')).to eq('tag')
           end
 
-          context 'contains version and span.service is not equal to the default tracer service' do
-            let(:tracer_options) { { default_service: 'global-service', tags: { version: '1.1.0' } } }
-            let(:service) { 'my-service' }
-            it 'does not set version on the span' do
-              expect(tracer.default_service).to eq('global-service')
-              expect(span.service).not_to eq('my-service')
-
-              expect(tracer.tags).to include(version: '1.1.0')
-              expect(span.tags).not_to include(:version)
+          context 'contains version and the span service name' do
+            let(:tracer_options) do
+              { default_service: 'global-service', tags: { Datadog::Core::Environment::Ext::TAG_VERSION => '1.1.0' } }
+            end
+            let(:options) { { service: service } }
+
+            context 'is nil' do
+              let(:service) { nil }
+
+              it 'sets version' do
+                expect(tracer.default_service).to eq('global-service')
+                expect(span.service).to eq('global-service')
+
+                expect(tracer.tags).to include('version' => '1.1.0')
+                expect(span.tags).to include('version' => '1.1.0')
+              end
+            end
+
+            context 'is equal to the default tracer service' do
+              let(:service) { 'global-service' }
+
+              it 'sets version' do
+                expect(tracer.default_service).to eq('global-service')
+                expect(span.service).to eq('global-service')
+
+                expect(tracer.tags).to include('version' => '1.1.0')
+                expect(span.tags).to include('version' => '1.1.0')
+              end
+            end
+
+            context 'is not equal to the default tracer service' do
+              let(:service) { 'local-service' }
+              it 'does not set version' do
+                expect(tracer.default_service).to eq('global-service')
+                expect(span.service).to eq('local-service')
+
+                expect(tracer.tags).to include('version' => '1.1.0')
+                expect(span.tags).not_to include('version' => '1.1.0')
+              end
             end
           end