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V0821-21 7 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · entrega de bienes

Sale of an original artwork by its author is subject to the reduced VAT rate of 10% if legal requirements are met

A master's student enquired about the VAT and Income Tax (IRPF) implications of selling an artwork to a local council. The Directorate General of Taxes (DGT) ruled that the supply of art objects by their author is subject to VAT at the reduced rate of 10% and that the proceeds are classified as income from professional activities.

The question raised

VAT and Personal Income Tax (applicable withholding) taxation on the sale of an artistic work.

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