Skip to content
Back to index
V4494-16 18 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · coproducción audiovisual

Cash contributions for audiovisual co-productions are not subject to VAT

A production company has requested clarification on whether cash contributions from another company for the co-production of an audiovisual work are subject to VAT. The Directorate-General for Taxes (DGT) has ruled that these contributions do not constitute consideration for any transaction subject to tax.

The question raised

Liability of the cash contributions made by the other company to the applicant

The DGT's ruling

Cash contributions made by a co-producer to the entity materially responsible for the production do not constitute consideration for an operation subject to VAT. Therefore, the tax must not be charged upon receipt of such amounts, although VAT will be applicable to the operations involving the assignment of rights generated by the work.

Book your free first meeting