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V0150-23 6 February 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Musical performances by entities of a social nature are exempt from VAT if they meet the legal requirements

A company inquired whether the musical performance contracted from a non-profit association was exempt from VAT. The DGT responds that the exemption applies if the association meets the requirements of an entity of a social nature.

The question raised

Question posed: Exemption of the services contracted by the inquirer for the purposes of Value Added Tax.

The DGT's ruling

Musical performances are exempt from VAT if they are carried out by entities of a social nature, which must lack a profit-making purpose, have unpaid officers, and not provide special benefits to their members. The exemption applies as long as these requirements are met, without the need for a prior classification by the Administration. If they are not met, the transaction is subject to the general rate of 21%.

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