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V2498-19 17 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 10% VAT rate applies to musical director services provided to musical work organisers

A musical director has requested clarification on the applicable VAT rate when providing services to an association that organises concerts versus when being hired by third parties. The DGT has ruled that the 10% reduced rate applies provided that the association acts as the organiser of the musical work and not merely as an intermediary.

The question raised

Question raised: Tax rate applicable for Value Added Tax purposes to the services provided by the applicant to the association.

The DGT's ruling

Services provided by natural persons acting as conductors to organizers of musical works are taxed at the rate of 10%. An organizer is considered to be anyone who orders the material or human resources for the performance of the work. If the association acts solely as a mediator and not as an organizer, the applicable rate shall be the general rate of 21%.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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