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V1861-23 27 June 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Image creation services may be VAT exempt, but light shows are taxed at 10% or 21%

A 'lightpainting' professional has requested clarification on the VAT rates applicable to their artistic photography services and light shows. The DGT has determined that image creation is exempt if provided as a service, but subject to VAT if it constitutes a supply of goods. Furthermore, light shows may be taxed at the reduced rate of 10% if provided to organisers of theatrical or musical performances.

The question raised

Applicable tax rate for the activities described in the Value Added Tax.

The DGT's ruling

The production of images (photos or video) is exempt from VAT if it is a provision of services, but it is taxable if a physical medium such as a printed portrait is delivered. Light or laser shows projected ephemerally are taxed at the default rate of 21%. The reduced rate of 10% shall only apply if the service is provided by a natural person artist to an organizer of theatrical or musical works.

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