Home » News » Is it legal in Chile to resell concert tickets? Lawyer warns fans and dispels myths | arts and culture February 26, 2022
Dua Lipa and Bad Bunny’s sold-out tickets sparked a wave of reselling on social media. In some cases, with prices four times more expensive than the most exclusive ticket for the show.
Is it legal in Chile to resell concert tickets? The question still has repercussions because of the bullados and the last “sold out” (recurring anglicism for “sold out tickets”) of the shows of Dua Lipa, Coldplay and Bad Bunny in the country, where this year the acquisition of tickets broke its own record.
On Tuesday of this week, the second show of the “Bad Rabbit” sold out all its tickets in less than two hours, as happened with the first date of the “The Hottest Tour in the World”his last tour.
In both cases, the resale of tickets It started almost immediately on social media, where the Puerto Rican’s broadcasts were one of the most talked about topics of the week. An environment that has favored the demand for banknotes and, consequently, the increase in their value: Some of them have reached over a million pesos.. In the general sale, on the other hand, values fluctuated between $40,000 and $250,000.
“The sale of tickets is not prohibited, and the only entity that could intervene in this process is the Internal Revenue Service (SII), but it is still difficult, because the most direct way to do it is by the regularity (of this practice).)”, points out BioBioChile the lawyer and specialist Andrés Ibarra of the firm simplejugment.
“Chilean law does not prohibit the resale of concert tickets. Where there are more limitations is in the sale of sporting events; specifically by “reselling at the price indicated on the ticket”, and which is generated by security problems related to football, but this does not extend to the cultural aspect”, explains Ibarra, who has been dedicated for years to the analysis of the legal contours of live music.
For this panorama to change, according to the lawyer, it would be necessary “legal reformwhich is obviously something super complex if we consider that in terms of shows, the legislation is quite poor. And he’s not responding either..
Although there is no flagrance, this does not mean that the current jurisdiction advocates the resale of tickets. “Where one type of irregularity could be investigated is in the payment of taxes by resellers”he warns.
“In theory, resale is an unusual sale between persons not subject to VAT; are not referred to in article 8 of Legislative Decree 825, but in the event that it acquires the character of usual, must be paid with the aforementioned tax. The problem is to wonder when it is usual or not, because the law gives us little idea about it”, he remarks.
“What we can do is use Article 4 of Supreme Decree 55 of 1977which establishes: “To qualify habituality, the IIS will consider the nature, amount and frequency with which the seller makes the sale of tangible, movable or immovable property in question, and with this history, he will determine whether the spirit that guided the taxpayer was to acquire them for their own use, for consumption or resale. It is up to the taxpayer to demonstrate that there is no regularity in their sales, and that he did not acquire the movable or immovable species with the intention of reselling them. »indicate.
“If someone bought two Bad Bunny tickets and sold one, they wouldn’t get into that character of habituality, and they wouldn’t have to tax (“action of imposing a tax, rate or other charge on a good or an activity”) with taxes on this same resale”, adds Ibarra.
In turn, the lawyer stops on a thread: “It happens that in the same resale, the higher value obtained could be understood as income, and when it is understood as income, it would be taxed with the corresponding taxes; generally, and more precisely in an order of 25% to 27% of the total sale, but it would be mandatory for this to be declared in the annual income statement, which, logically, no natural person usually does. You are not going to put the resale of Bad Bunny tickets on your tax account”of.
To account for these cases, he points out, a detailed inspection by the Internal Revenue Service would be necessary: “If they got involved, they could do it. But due to the nature of the quantities and because it happens so sporadically, it is difficult to control it”.
“In short, resale is not prohibited by the current system, particularly in the cultural field. The sports area is somewhat restricted, but in the cultural area there is absolutely nothing. Where cracks could be found to keep people in check is when they regularly resell. Or else, when it’s in line with the higher value obtained in the same resale, but for that, it has to be declared in the annual income statement, or the SII has an eye on it, “slips. -he.