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V3187-14 27 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Illustrator drawings are VAT exempt, while sales of paintings and sculptures attract the 10% reduced rate

An artist enquired whether their illustration services were exempt from VAT and which rate applied to the sale of their works. The DGT has determined that the work of a draughtsman is exempt and that the sale of their original paintings and sculptures is subject to the reduced rate.

The question raised

1. Application of the exemption contained in Article 20, paragraph one, number 26 of the Value Added Tax Law in their capacity as illustrators. 2. Tax rate applicable to the sale of works of art to private collections or institutions.

The DGT's ruling

The provision of services by draughtsmen consisting of the creation of illustrations is exempt from VAT, as it is considered professional services provided by authors. However, the sale of paintings and sculptures created by the artist is not a provision of services but a supply of goods, and therefore the exemption does not apply. Such supplies of works of art by their authors are subject to the reduced tax rate of 10%.

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