Taxation of sponsorship to a minor in their sports activity: VAT/IRPF implications

• The sponsorship of a minor in their sports activity is subject to VAT.
• The economic sponsorship obtained would be considered a capital gain.
• The minor is providing a service to a company by granting them the right to exploit their image as an athlete.
• The transfer of image rights is subject to VAT and no exemptions apply.
• The VAT rate to be applied is 21%.
• The minor can deduct VAT paid on goods and services acquired from other businesses or professionals.
• Individuals without legal capacity in tax matters must act through their legal representatives.
• The classification of the income as income from economic activities depends on whether the sports activity constitutes an economic activity.
• This determination is a matter of fact and must be proven through admissible means of evidence.
• The assessment of this determination is the responsibility of the tax authorities.

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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