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V1982-14 23 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Children's theatre activities subject to the standard 21% VAT rate

A professional inquired whether their children's theatre activity could qualify for the reduced VAT rate on the grounds of child protection. The Directorate-General for Taxes (DGT) ruled that neither the exemption nor the reduced rate can be applied.

The question raised

Value Added Tax treatment of the described activity. Possibility of applying the reduced rate as they are child and youth protection activities.

The DGT's ruling

Children's theater activities do not conform to social assistance services for the protection of children and youth. As they are not provided by entities of a social nature, they do not benefit from the exemption under Article 20. Therefore, these activities are taxed at the general rate of 21%.

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