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V3438-16 20 July 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeción

Registration fees and professional rider prizes are subject to 21% VAT

A company organising motorcycle racing championships has requested a ruling regarding the VAT treatment of registration fees and cash prizes. The DGT has determined that registration fees are taxable and that prizes awarded to professional riders are also subject to VAT, whereas prizes for amateur riders fall outside the scope of the tax.

The question raised

Liability and, where applicable, exemption of the aforementioned operations. Applicable tax rate. Obligation to issue an invoice for prizes subject to the Tax.

The DGT's ruling

Registration fees are subject to VAT when the recipient is a business or professional based in Spain, or when they are materially provided in Spanish territory if the recipient is not a business. Cash prizes for professional pilots are considered consideration for a business activity subject to VAT at 21%. Prizes for amateurs do not constitute consideration for an operation subject to the tax. Professional pilots must issue an invoice for the prizes received.

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