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V1567-20 25 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% reduced VAT rate applies to sound technician services provided to theatrical or musical performance organisers

A sound technician requested clarification on the VAT rate applicable when invoicing a dance company that organises shows. The DGT ruled that the 10% reduced rate may be applied if the services are provided to an organiser of theatrical or musical performances.

The question raised

Applicable VAT rate for services provided by the applicant to the dance company.

The DGT's ruling

Services provided by technicians who are natural persons to organizers of theatrical or musical works are taxed at a 10% VAT rate. An organizer is considered to be anyone who orders the material or human resources for the performance. To apply this rate, the services must relate to theatrical or musical works and be provided to the organizer, rather than to a mere intermediary. Otherwise, the general rate of 21% shall apply.

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