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A taxpayer asks which VAT rate and IAE heading apply to the organization of a festival featuring music, sports, workshops, and camping. The DGT determines that, as a single price is charged, the activities are ancillary to the musical event and are taxed at the reduced rate.
Question posed: Applicable VAT rate for access to the musical event organized by the taxpayer and the heading under the Tax on Economic Activities for the aforementioned activity.
If a single price is offered for access to a music festival, the other activities (sports, workshops, conferences, or camping) are considered ancillary supplies to the principal one. Being ancillary, they follow the taxation regime of the principal service, which is access to the musical event. Therefore, the entire operation shall be taxed at the 10% reduced rate provided for concerts and live cultural shows.
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