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V3328-20 11 November 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · empresario o profesional

Architecture prize subject to VAT if obtained professionally; IRPF exemption depends on prior ruling

A query was raised regarding the VAT and IRPF taxation of an architecture prize in the Europan 15 competition. The Tax Agency responds that the prize is subject to VAT if the architect is acting in a professional capacity, and that the IRPF exemption depends on whether the conditions for the exemption previously granted in prior calls are maintained.

The question raised

VAT and Personal Income Tax (IRPF) taxation of an architecture prize obtained in the Project Competition with Jury Intervention Europan 15.

The DGT's ruling

Regarding VAT, the supply is taxable if the architect acts as a businessperson or professional, and the tax must be charged via invoice. Regarding Personal Income Tax (IRPF), the exemption for relevant artistic prizes is conditional upon the terms that allowed the exemption in previous calls for entries remaining unchanged, as occurred with Europan 8. The interested party must verify with the AEAT whether the current call for entries maintains said exemption.

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