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V1435-22 20 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · entrega de bienes

Sale of paintings by an artist may be subject to VAT and taxed as professional income for Income Tax purposes

An amateur artist has enquired about the VAT and Income Tax implications of selling paintings at an exhibition. The DGT indicates that if there is an intention to intervene in the market, the activity is considered professional. Consequently, sales of handmade paintings are subject to 10% VAT and must be declared as professional activity income for Income Tax purposes.

The question raised

Taxation under VAT and Personal Income Tax (IRPF) regarding the potential sale of some of their works.

The DGT's ruling

Transactions shall be subject to VAT if the artist intends to participate in the production of goods and services, acting as a professional even if on an occasional basis. Deliveries of paintings made entirely by hand are considered works of art and are taxed at the 10% rate. For Personal Income Tax (IRPF), income from the sale of one's own artistic work is classified as income from professional activities.

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