Taxes on horse shows

Today we will talk about taxes in horse racing, a subject that can rise doubts. And is that, whether you are thinking of competing for the first time or if you have already done so, knowing the taxes accrued by the prizes won is something highly recommended so you don’t get surprised the day you get your prize. Hacienda is not forgotten and taxes are paid.
First, it should be noted that the prize amounts will depend on the type of event and the rider’s classification. You can always check the different prizes that are aspirated within each of the competitions and clarify any doubts you may have.
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In this area, the main indirect tax that you will find is the IVA/VAT that taxes the consumption when applied on most purchases / sales and services and to which, therefore, are subject and not exempt, the benefits of Services consisting of the participation of equestrian tournaments by individuals in the exercise of their professional activity. The tax should be passed on at the general rate on the persons or entities that are organized at tournaments, regardless of the type of consideration received (fixed amount per participation, prizes or cash payments according to the classification obtained or others).
Do not forget about direct taxes either. Here you will mainly use the known Personal Income Tax (IRPF), the Income Tax of Individuals. To this tax, it should be noted that the prizes awarded to riders who win in rider competitions by each organizing entity are considered as income derived from a professional activity. In the absence of a relationship of dependence between the organizing entity and the riders, they are considered yields of economic activities when it is understood that these prizes have been obtained in the exercise of their activity by submitting to withholding the returns for sport competitions. Consequently, such income is subject to such withholding tax, which must be paid on the gross income received, excluding IVA/VAT, and at the rate that the general tax rules generally apply to income from professional activities.
Did you know all this about taxes in horse shows?

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