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An audiovisual set construction company has queried whether its activity constitutes the production of tangible goods for the Canary Islands Special Tax Regime (REF). The Directorate-General for Taxes (DGT) ruled that if the activity is provided as a stage decoration service, it is not eligible for the rebate; however, if it is independent industrial manufacturing of elements, it is eligible.
Companies involved in set design must distinguish between providing a service and industrial manufacturing to ensure correct tax treatment under the REF.
The tax team reviews your specific situation.
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