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V2344-19 10 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad de carácter social

Fees, subscriptions and sponsorships by a private social cultural entity may be exempt from VAT

A non-profit association has requested a ruling on the VAT treatment of its income from membership fees, subscriptions, tickets, and sponsorships. The DGT has determined that musical activities are exempt provided the requirements for a social cultural entity are met, whereas pure advertising services remain subject to tax.

The question raised

Taxation under Value Added Tax for the described activities.

The DGT's ruling

Musical performances by private cultural entities of a social nature are exempt from VAT provided that the requirements of said status are maintained. Income from fees, subscriptions, tickets, and concert bookings are considered exempt operations. However, advertising income that does not derive from business collaboration agreements in activities of general interest (Law 49/2002) constitutes a supply of services subject to the tax at the general rate.

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