Skip to content
Back to index
V0295-17 3 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad de carácter social

Cultural associations holding musical concerts may be VAT exempt if they meet social entity requirements

A cultural association charging for tickets to musical performances without remunerating its members has queried whether VAT must be applied. The DGT indicates that the association acts as a business entity and that, provided it meets the requirements of a social entity, musical performances are exempt from VAT.

The question raised

Question raised: Taxation regarding Value Added Tax on the concerts performed and, where applicable, the pass-through of Value Added Tax.

The DGT's ruling

The association is considered an entrepreneur by organizing means to carry out onerous activities. Musical performances are exempt from VAT if the entity is a private cultural establishment of a social nature. To this end, it must lack a profit-making purpose, have officers serving without remuneration and without interest in the results, and the members must not be the primary beneficiaries nor enjoy special conditions.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Email
Contact