Skip to content
Back to index
V0886-18 6 April 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · coproducción cinematográfica

Cash contributions from a partner for audiovisual co-productions are not subject to VAT

A company sought clarification on whether VAT should be applied to amounts advanced by a partner to finance a film co-production. The DGT ruled that these contributions do not constitute consideration for a taxable transaction, but are instead part of a joint project.

The question raised

Liability for Value Added Tax on the settlements made by the consultant to its partner regarding the amounts advanced within the framework of the co-production.

The DGT's ruling

Cash contributions made by a co-producer for the production of an audiovisual work do not constitute consideration for any transaction subject to VAT. Therefore, the tax must not be charged upon receipt of such amounts. However, the assignment of rights or results of the co-production shall be subject to the tax if carried out for consideration by a businessperson or professional.

Book your free first meeting