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A Canary Islands Council has requested clarification on whether hiring a musical band or entering into an advertising agreement with a private company is subject to VAT. The Directorate General for Taxes (DGT) indicates that if the parties are not located within the VAT application territory but in the Canary Islands, the transaction would not be subject to state VAT, although it may be subject to the Canary Islands General Indirect Tax (IGIC).
The tax team reviews your specific situation.
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