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V1437-20 14 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% reduced VAT rate applies to services provided by individual artists and technicians to an organiser

The taxpayer is inquiring about the applicable VAT rate for services invoiced by technicians and artists for concert organisation. The DGT clarifies that services provided by natural persons (artists or technicians) are subject to a 10% rate if provided to an organiser of musical or theatrical works.

The question raised

The applicable Value Added Tax rate for services provided to the consulting company by the technicians and artists who issue the corresponding invoices.

The DGT's ruling

Services provided by artists, directors, and technicians who are natural persons to organizers of theatrical or musical works are taxed at 10%. An organizer is considered to be anyone who orders the material or human resources for the performance. If the consulting company acts as an intermediary and not as an organizer, its services are taxed at 21%.

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