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VAT Cut for Cultural Activities

VAT-Cut-for-Cultural-Activities.jpgThe Spanish Government plans on cutting down the value added tax for cultural activities. This decision comes after a decrease of the popularity and the sales for live events in the country. Investors in the entertainment industry in Spain can talk to one of our attorneys in Spain to find out more how they will benefit from the implementation of this measure.

Preferential VAT rate

 
The value added tax on cultural activities will be cut, as confirmed by the Spanish Government who is thus trying to revive the declining live entertainment industry. The sale of live tickets fell more than 25% after the standard value added tax rate was introduced on cultural services and goods. This was part of the 2012 austerity measures, however, how the Government is looking at rehabilitating this sector.
 
The VAT rate for cultural goods and services will have a 10 percent rate in the 2017 Budget, as opposed to the 21 percent standard rate that is still applicable for other types of services. A lower, 4 percent VAT rate applies in Spain for basic goods.
 
One of our attorneys in Spain can give you more information on how this indirect tax will change and what will your VAT reporting requirements be from 2017 onward if you activate in the entertainment industry.
 

Taxes in Spain

 
The value added tax is a type of indirect tax levied in Spain on the supply of various types of goods and services, imports and intra-community acquisitions. Some activities are exempt from VAT, such as banking and financial services, medical and dental services, educational and insurance services and only some types of real estate sales. Taxpayers in Spain are required to register for VAT purposes and to file a monthly VAT return with the authorities. This monthly requirement applies if their turnover (in the previous year) is larger than 6,010,121.24 EUR. In all other cases, company owners in Spain are required to submit quarterly returns.
 
You can contact the experts at our law firm in Spain for more information on taxation.
 

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