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A television production company has requested clarification on the tax treatment of payments for the use of locations for filming. The Directorate General for Taxes (DGT) has ruled that these operations are subject to VAT, even when involving residential properties, and that payments to owners are subject to Income Tax (IRPF) or Corporation Tax withholding, depending on the specific circumstances.
Production companies must account for 21% VAT on location rentals and ensure correct tax withholdings are applied to payments made to property owners.
The tax team reviews your specific situation.
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