Since January 2019, a new IVA rate of 10% applies to invoices issued by performers, directors or technicians involved in the “show business.”Learn the requisites here.
The Law clarifies that “It will apply a rate of 10 percent to the services provided by performers, artists, directors and technicians, who act as self-employed, to film makers and organisers of theatrical plays and music shows”
Only self-employed individuals can issue invoices with 10% IVA
Limited Companies, SC companies, Associations, etc… who may serve as an intermediary between the performers and organisers will still have to apply 21%.
For example, a band is registered as an SC company of which the individual members are partners. If they invoice for their show to the organiser, 21% will apply because they do not meet this requisite.
The service destination must be a film maker or the show organiser.
The Legislation considers ‘organiser’ to be the entity who puts together human and/or material means with the objective to perform the show/concert/play…
For example, a musician issues an invoice to an intermediate who in turn will invoice the organiser. In this case, unless the intermediate entity is given representation powers by any of the parties, its mere presence invalidates the assumption that the self-employed performer is invoicing the organiser.
There is no need that the organiser be a professional promoter. The law acknowledges other occasional organisers such as: public entities ( like the Ayuntamiento), neighbour associations, political parties, businesses . These at times may organise shows for different purposes.
While identifying the performers or the director may be very easy, what kind of technician does the law refer to? Those directly related to the show such as those invoicing for the sound, lights, special effects, etc…