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V3041-15 9 October 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Cultural services contracted by a non-profit may be subject to VAT in Spain

A non-profit organisation asks whether music, theatre and dance services contracted for a festival are subject to VAT in Spain. The DGT responds that such services are subject to VAT if the recipient is a business with a registered office within Spain, regardless of the provider's residence.

The question raised

Subjectivity and, where applicable, exemption of cultural services involving music, theater, dance, and analogues performed for the consultant and the taxable person thereof.

The DGT's ruling

Services provided to a business established in Spain are subject to VAT in Spanish territory, regardless of the location of the provider. When the provider is a person or entity not established in Spain, the consulting entity shall be the taxable person for the transaction. Exemptions for non-profit entities apply to the services they provide, not to those they acquire.

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