The law grants a partial exemption from the IUC to vehicles whose main activity is the traveling show or the performing arts, but excludes vehicles used to support shows, such as set-up and dismantling of stages.
This understanding of the Tax Administration is based on the response to a request for binding information that came from a taxpayer with the main CAE (Code of Economic Activities) in the field of activities in support of the performing arts, whose vehicle he owns and in which who wants to know if he can benefit from an exemption of 50% of the IUC, it is used exclusively for the transport of materials and accessories between the warehouse and the premises and vice versa.
In the information provided to the Tax and Customs Authority, the taxpayer explains that he is active in the area of culture through, specifically, the assembly and disassembly of stages, technical support in the light and sound of the shows and the rental of equipment in these areas to the promoters of these shows, or even to the artists who perform them, promoting also the shows themselves.
In addition to the main activity with which it is registered (which corresponds to CAE 90020), the taxpayer also has performing arts as his first secondary activity (CAE 90010).
The law gives a 50% exemption of the Single Circulation Tax (IUC) to category C vehicles, with a gross weight greater than 3,500 kilos “in relation to which the taxpayers mainly carry out the activity of traveling shows or performing arts, and provided that the vehicles be exclusively assigned to this activity.
The conditions required to benefit from this exemption, indicates the Tax Administration, are “cumulative in nature”therefore, the lack of verification of one of the assumptions, “determines the exclusion from the scope of application of the exemption”.
In this context, it is mentioned, the assumptions are not fully required by law to the extent that the taxpayer “does not exercise, primarily, the performing arts activity.”
This is because, according to the Tax and Customs Authority (TA), in accordance with the provisions of the law, it is understood that the legislator, when establishing this partial exemption, “was fully aware of who it was addressed to and under what conditions, both more than specifically described and typified in the standard.
In other words, “the legislator tried to limit the partial exemption at issue here, to taxpayers who mainly carry out itinerant activities of shows and performing arts, according to the typification of the Code of Economic Activities. [CAE]”.
Source: Observadora
