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V0449-14 19 February 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Foundation museum visits may be VAT exempt if social character is maintained despite Director General's remuneration

A state-owned public sector foundation has requested a ruling on whether its museum visit services are exempt from VAT. The DGT is examining whether the remuneration of its Director General prevents the entity from being classified as a private establishment of a social nature.

The question raised

Question raised: Exemption of these operations from Value Added Tax.

The DGT's ruling

Visits to museums are exempt if the entity is a Public Law entity or a private establishment of a social nature. If the Director General, through delegated functions, adopts final economic policy decisions and exercises superior control, the remuneration for said position would preclude the social nature. However, if their functions are merely executive under the direction and control of the decision-making authority, the remuneration of the Director General does not prevent the entity from maintaining its social nature.

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