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V1346-18 23 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · coproducción audiovisual

Cash contributions in audiovisual co-productions are not subject to VAT

A television channel company inquires whether its investments in film co-productions are subject to VAT. The DGT determines that financial contributions in a co-production do not constitute consideration for a transaction subject to the tax.

The question raised

Question posed: Subjectivity of the described transactions to Value Added Tax.

The DGT's ruling

Cash contributions made in an audiovisual co-production to jointly produce a work do not constitute consideration for a transaction subject to VAT. Therefore, the document justifying such contributions is not considered an invoice and the tax must not be charged. Subsidies not linked to the price of transactions do not affect the right to deduct input VAT.

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