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V3296-23 ·26 December 2023 ·consulta-vinculante Medium impact
Tax

Entry to nightclubs with live music taxed at 10% VAT; companies cannot claim refunds for excess amounts charged

A hospitality company inquired whether entry to its nightclub featuring DJs should be taxed at 10% or 21% VAT, and who is entitled to a refund in the event of a correction. The DGT ruled that the entry service is subject to 10% VAT as it constitutes a cultural performance, and that the company is not entitled to receive a direct refund of the fees passed on in excess.

In 6 key points

How it affects those involved

This ruling clarifies the applicable VAT rate for nightclub entry services involving live music and establishes that companies cannot directly reclaim VAT incorrectly charged to customers through a refund of undue income, as the right to a refund belongs to the consumer.

Lifecycle

2023-12-26PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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