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V2863-18 5 November 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Ticket sales for concerts may be VAT exempt if the association is a social cultural establishment

A non-profit association sought clarification on whether ticket sales for its musical performances were subject to or exempt from VAT. The DGT indicates that if the entity meets the requirements of a private cultural establishment of a social nature, the activity will be exempt.

The question raised

Whether the sale of tickets for the musical performances organized by the applicant is subject to and exempt from Value Added Tax.

The DGT's ruling

The association is considered a business entity as it organizes means to carry out an economic activity for consideration. Musical performances are exempt from VAT if they are carried out by private cultural entities of a social nature. To this end, they must lack a profit-making purpose, have unpaid officers with no interest in the results, and the members must not be the primary beneficiaries nor enjoy special conditions.

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