Back to index
V4257-16 4 October 2016 · SG de Fiscalidad Internacional Criterion in force
IRNR · artistas y deportistas

Income of an artist resident in Germany for a concert in Spain may be taxed at 19% for Non-Resident Income Tax and at 21% for VAT

A query was made regarding the taxation of an artist residing in Germany who performs a concert in Spain. The DGT determines that the income may be taxed in Spain via Non-Resident Income Tax (IRNR) and that the service is subject to VAT at a rate of 21%.

The question raised

Question raised: Information is requested regarding the liability of artistic activity (concert) for VAT and Personal Income Tax, as well as the determination of the applicable withholding tax rate and VAT rate.

The DGT's ruling

If the performance is not substantially financed by public funds under an approved cultural exchange program, the income is taxed in Spain under the Non-Resident Income Tax (IRNR) at a rate of 19%. The concert service is subject to VAT at the general rate of 21%. If the recipient is a businessperson or professional, the reverse charge mechanism applies; if not, the provider must charge the tax.

Email
Contact