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V1685-18 13 June 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · explotación de ferias

Organising a trade fair by a local council is subject to VAT at the reduced rate of 10%

A local council has requested clarification on whether organising a 'tapas festival' is subject to VAT and which rate applies. The DGT has determined that if the event is commercial in nature, the provision of services is subject to tax, regardless of the nature of the consideration.

The question raised

Liability for Value Added Tax of the activity consulted in the event that the consideration received by the City Council has a tax or non-tax nature.

The DGT's ruling

The operation of trade fairs by Public Administrations is always subject to VAT. If the purpose of the event is the promotion of goods or services of the participants, it is considered a trade fair. In this case, the reduced tax rate of 10% applies to the services provided by the organizer to both participants and visitors.

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