Spain | Reduced VAT Rate with Regards to Cultural Events

Spain has revised the wording of two points of Article 91 of Spanish VAT law.

This update broadens the scope of the reduced rate of 10% to include it applying to several cultural activities, including concerts, theatre performance, bull fights and discotheques as well as other live performances.

This is also applicable to hotel and hospitality services where the provision of catering is accompanied by recreational services or entertainment, which had been excluded from the reduced rate since 2012. However, how the rules are applied in practice is complicated and advice should be sought to ensure that any change of VAT treatment to enjoy this adjustment is correct.