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V2641-23 29 September 2023 · SG de Tributos Locales Criterion in force
OTRO · actividad empresarial

Show production and artist booking activities are classified as business activities

A company sought clarification on whether its event production and artist booking activities should be classified as professional or business activities. The DGT has determined that, as it is a legal entity, the activity is business-related and must be classified under the first section of the IAE Tax Rates.

The question raised

Should the activity of show production services and artist contracting be considered business-related or professional?

The DGT's ruling

The activity is professional when exercised personally on one's own account, but it is business-related when carried out through an organization detached from the professional persona. As it concerns a legal entity, its activities are business-related in nature and must be taxed under the first section of the Tariffs. Depending on the nature of the services, the company must register under different headings such as artist placement agencies, entertainment companies, or congress organization services.

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