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V1472-24 18 June 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · combinaciones aleatorias

Organisation of promotional lucky draws in Spain subject to Gambling Activities Tax

An international footwear trading company has requested a ruling on whether a giveaway designed to promote its products among registered website users constitutes a taxable event for Gambling Activities Tax. The Directorate General for Taxes (DGT) has ruled that the activity is subject to the tax if organised in Spain, regardless of the participants' place of residence.

The question raised

Whether the delivery of the corresponding prizes to customers located abroad, each of whom competes in their own market, would constitute the taxable event for the Tax on Gambling Activities, and, if so, whether the sweepstakes could be classified as a random combination for advertising or promotional purposes.

The DGT's ruling

The holding of sweepstakes for advertising or promotional purposes constitutes the taxable event for the Tax on Gambling Activities if they are authorized, held, or organized in Spain. It is irrelevant whether the organizer or the participants are not residents in Spain, provided that the activity has a national scope. In this case, the applicable tax rate is 10 percent of the market value of the prizes.

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