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V0516-19 12 March 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Original illustration and graphic design services exempt from VAT

A graphic designer asks whether her services provided to an international organisation in Switzerland are exempt from VAT and what declaration obligations apply. The DGT determines that the services are exempt as they constitute original artistic creations, but the prorata rule applies if other VATable activities are carried out.

The question raised

Exemption from Value Added Tax and, where applicable, the application of the pro rata rule and the obligation to submit periodic returns.

The DGT's ruling

The professional services of visual artists whose object is their original artistic creations, such as illustrations or graphic designs, are exempt from VAT pursuant to Article 20.One.26 of the Law. If the professional carries out other taxable activities, the pro rata rule must be applied. They shall not be required to submit periodic VAT returns if they exclusively carry out these exempt operations. However, they must submit Form 347 if operations with the international organization exceed €3,005.06 and must issue an invoice.

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