The sold out tickets of Dua Lipa and Bad Bunny triggered a wave of resale on social networks. In some cases, with prices four times more expensive than the most exclusive ticket to the show.
Is it legal in Chile to resell concert tickets? The question still has repercussions as a result of the bullados and 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” liquidated all its tickets in less than two hours, as happened with the first date of the “World’s Hottest Tour”his last tour.
In both cases, the ticket resale It began almost immediately on social networks, where the Puerto Rican’s shows were one of the most commented topics of the week. An environment that favored the demand for tickets and, consequently, the increase in their value: Some of them reached more than a million pesos.. In the general sale, in contrast, the values fluctuated between $40 thousand and $250 thousand.
“The sale of tickets is not prohibited, and the only entity that could intervene in this process is the Internal Revenue Service (SII), but even so it is difficult, because the most direct way to do this is through regularity ( of this practice)”, points out BioBioChile the lawyer and specialist Andrés Ibarra of the firm simplejudgment.
“Chilean law does not prohibit the resale of concert tickets. Where there are more limitations is in the sale of sporting events; specifically in ‘reselling on the price indicated on the ticket’, and that is generated by security issues related to football, but that does not extend to the cultural aspect, “explains Ibarra, who for years has dedicated himself to analyzing the legal edges of live music.
For this panorama to change, according to the lawyer, it would be necessary to “a legal reformwhich is obviously something super complex if we consider that in terms of shows, the legislation is quite poor. And it doesn’t respond to the current times either.”.
“Usual resale”
Although there is no flagrancy, this does not mean that the current jurisdiction advocates the resale of tickets. “Where some type of irregularity could be studied is in the payment of taxes by resellers”he warns.
“In theory, resale is an unusual sale between people who are not VAT taxpayers; are not contemplated in article 8 of Decree Law 825, but in the event that it acquires the character of habitual, should be paid with the aforementioned tax. The problem is wondering when it is usual or not, because the law gives us few notions about that, ”he remarks.
“What we can do is resort to Article 4 of Supreme Decree 55 of 1977which establishes: ‘To qualify habituality, the SII will consider the nature, amount and frequency with which the seller makes the sale of tangible, movable or immovable property, in question, and with these antecedents it will determine if the spirit that guided the taxpayer was to acquire them for their use, for consumption or resale. It is up to the taxpayer to demonstrate that there is no regularity in their sales, and that they did not acquire the movable or immovable species with the intention of reselling them.”point.
“If someone bought two tickets for Bad Bunny and sold one, he does not enter into this character of habituality, and he would not have to tax (“action of imposing a tax, rate or other charge on a good or activity”) with taxes this same resale”, adds Ibarra.
In turn, the lawyer stops at an edge: “It happens that in the same resale, the higher value obtained could be understood as income, and when understood as income, it would be taxed with the corresponding taxes; generally, and specifically in an order of 25%-27% of the total sale, but it would be mandatory that this be reported in the Annual Income Statement, which logically no natural person usually does. You are not going to put Bad Bunny’s ticket resale on your tax bill “dice.
To account for these cases, he points out, a detailed inspection by the Internal Revenue Service would be required: “If they got involved, they could do it. But due to the nature of the amounts and because it occurs so sporadically, it is difficult to control it “.
“In short, resale is not prohibited by the current system, especially in the cultural area. The sports area is somewhat restricted, but in the cultural area there is absolutely nothing. Where cracks could be found to control people, is when they carry out a resale on a regular basis. Or if not, when it is in accordance with the higher value obtained in the same resale, but for that, it is required that this be declared within the Annual Income Statement, or that the SII is with its eye there, “he slides.