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V2622-20 4 August 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cesión de derechos de autor

Assignment of copyright for original designs may be VAT exempt; IRPF classification depends on activity

A graphic designer seeks clarification on IAE, VAT, and IRPF taxation regarding the assignment of designs through royalties. The DGT has ruled that the assignment of original artistic works is exempt from VAT and that the income may be classified as employment income or professional activity income, depending on how the activity is organised.

The question raised

Taxation under IAE, VAT, and IRPF.

The DGT's ruling

The assignment of copyrights for an original artistic work is exempt from VAT pursuant to Article 20.One.26 of Law 37/1992. In the IAE, if the designer acts without a business organization, they are considered a professional (group 399); if an organization exists, it is a business activity (heading 843.9). For IRPF purposes, income from the assignment of rights constitutes income from employment, unless performed as a professional economic activity.

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