VAT on filming and event services for non-EU business customers

The Directorate General of Taxes (DGT) has issued a relevant ruling for the audiovisual production and event organization sector. The inquiry analyzes whether the provision of filming and event services to business customers located outside the European Union should be subject to Value Added Tax (IVA) in Spain.

What the DGT has ruled

The body has determined that services provided to businesses located outside the European Union are not considered to be performed within the territory where the Tax applies. In this sense, the DGT clarifies that event organization and filming services are not included in the specific list provided in Article 70.Two of Law 37/1992.

Since they are not included in said list, the rule of effective use or exploitation in Spain is not applicable. Consequently, these services are not subject to IVA, as the service is not considered to be performed in Spanish territory for tax purposes.

What this means for you

If your professional activity consists of organizing events or conducting filming for clients who are businesses established outside the European Union, you should not charge IVA on your invoices. This ruling provides legal certainty regarding the place of performance of the service, preventing the undue application of the tax in international operations with third countries.

What you should do

It is fundamental that companies in this sector verify the business status of their non-EU clients and their location outside the European Union to correctly apply this ruling. Proper documentation of the non-EU client status is essential to justify the non-application of the tax in the event of an inspection. It is recommended to assess the particular situation of each contract and the nature of the service provided to ensure compliance with current regulations.