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V0298-20 7 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Ticket sales for cultural events may be VAT exempt if the foundation is a social entity

A foundation organising cultural events has queried whether its ticket sales are exempt from VAT. The DGT has ruled that exemption depends on whether the foundation meets the requirements of a social entity and whether the intermediary acts on behalf of another or on their own account.

The question raised

Exemption applicable to the sale of said tickets in Value Added Tax.

The DGT's ruling

Cultural services are exempt from VAT if provided by a public law entity or a private cultural establishment of a social nature. If the sale of tickets is carried out through a third party acting on behalf of another, the foundation is the service provider and the exemption is applicable. If the third party acts in its own name, the exemption does not apply to the sale of tickets to the public because the commercial company is not an entity of a social nature.

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