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V0408-22 3 March 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · crowdfunding

Crowdfunding contributions subject to VAT if goods or services are provided in return

An association has enquired whether contributions received during a crowdfunding campaign are subject to VAT when rewards are provided. The DGT has ruled that if the amounts constitute consideration for goods or services, the transaction is subject to the tax.

The question raised

Treatment for Value Added Tax purposes of the contributions received in a crowdfunding campaign.

The DGT's ruling

If the contributions constitute consideration for goods or services received by the contributor, the transaction is subject to and not exempt from VAT, provided that the promoter is a businessperson or professional. In this case, the taxable person must charge the tax by means of an invoice. If the contributions are made without receiving anything in return, there is no act of consumption and they are not subject to the tax.

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