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V2934-19 23 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

10% reduced VAT rate applies to storytelling services provided by individuals

A professional storyteller inquired whether performances contracted by local councils and entities could be taxed at the reduced rate of 10%. The DGT ruled that, as an individual providing services to an organiser of theatrical works, the storyteller is entitled to this reduced rate.

The question raised

Regarding the applicability of the reduced rate of 10 percent contained in Article 91.One.2.13º of the Value Added Tax Law to the activity carried out by the applicant.

The DGT's ruling

Services provided by interpreters, artists, directors, and technicians who are natural persons to organizers of theatrical or musical works are taxed at a 10% VAT rate. An organizer is considered to be anyone who orders the material and human resources for the performance of the work. To apply this rate, the location of the performance, the method of remuneration, or whether the organizer's purpose is for-profit or non-profit is irrelevant. If the service is provided by a legal entity, the applicable rate shall be 21%.

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