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V1726-17 4 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

Artworks sold by a company other than the author will be subject to 21% VAT

A taxpayer intends to incorporate a company to sell their sculptures and paintings. The DGT rules that if the company is not the author of the works, it cannot apply the reduced 10% VAT rate.

The question raised

Tax rate applicable to the supplies of sculptures and paintings carried out by the aforementioned Limited Company.

The DGT's ruling

If the company does not hold the status of author of the works of art, the supplies shall be taxed at the general rate of 21%. To apply the reduced rate of 10% as a trader other than a reseller, the work must have been previously acquired or imported subject to tax. In this case, as the works were created and not previously acquired, the requirement for the reduced rate is not met.

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