Is it legal in Chile to resell concert tickets? Lawyer warns fans and debunks myths

Home » News » Is it legal in Chile to resell concert tickets? Lawyer warns fans and debunks myths | Art and Culture February 26, 2022

Dua Lipa and Bad Bunny’s tickets sold out and sparked a wave of resale on social media. In some cases, the prices are four times more expensive than the most exclusive tickets to attend the show.

Is it legal in Chile to resell concert tickets? The question still has repercussions as a result of the bulls and another “sold out” (often in English to “sell tickets”) for the shows. 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 “Bad Rabbit” show emptied out all of its tickets in less than two hours like it did on the first date. “The most important tour in the world”His last round.

Either way, the ticket resale It started almost immediately on social media, with Puerto Rican shows being one of the most talked about topics of the week. The environment that encouraged the demand for tickets and thus increased their value: Some amounted to more than a million pesos.. In general sale, on the other hand, the values ​​ranged between $40,000 and $250,000.

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“It is not prohibited to sell tickets, and the only entity that can interfere in this process is the Internal Revenue Service (SII), but it is still difficult, because the most direct way to do it is through regularity (for this practice) ,” he points out. Biobio Chile Lawyer and specialist Andrés Ibarra of Simple Trial.

Chilean law does not prohibit the resale of concert tickets. Where there are more restrictions on the sale of sporting events; Specifically in the “resale at the price indicated at the ticket”, this is due to security issues related to football, but this does not extend to the cultural aspect, “explains Ibarra, who has dedicated himself for years to analyzing the legal live music

To change this scenario, according to the lawyer, it will be necessary ‘law reform’Which is obviously a very complicated thing if we take into account that in terms of actions, the legislation is very weak. And it doesn’t respond to current times either.”.

“regular resale”

Although there have been no cases of flagrante delicto, this does not mean that the current jurisdiction requires the resale of tickets. “Where it is possible to study a type of irregularity in the payment of taxes by distributors”warns.

“In theory, resale is an unusual sale between people who are not VAT payers; It is not mentioned in article 8 of Decree-Law 825, but in case it acquires the status of usual, with the previous tax. The problem is knowing when it is normal or not, because the law gives us very little conception of that, ”he points out.

“What we can do is turn to him Article 4 of Supreme Decree 55 of 1977which establishes: “To qualify the habit, the SII will take into account The nature, amount, and frequency with which the seller makes the sale. Of the tangible, movable or immovable property in question, and with such background, it will determine if the spirit directed to the taxpayer is to acquire them for their use, consumption or resale. It is up to the taxpayer to establish that there was no irregularity in their sales, and that they did not acquire the movable or immovable species with the intention of reselling them.”Point.

“If someone buys two tickets for Bad Bunny and sells one, they will not have this nature of habit, they will not have to pay taxes.” (“the act of imposing a tax, rate or other charge on a good or activity”) with the resale taxes themselves,” adds Ibarra.

In turn, the lawyer stops at the edge: “It happens that in the same resale, The highest value obtained can be understood as income, and when it is understood as income, it is taxed with the corresponding taxes; Generally, and specifically 25%-27% of the total sales order, but it would be mandatory to report it in the annual income statement, something that no normal person would normally do. You will not put a Bad Bunny ticket resale on your tax bill.”Dice.

To account for these cases, he points out, a detailed examination by the Internal Revenue Service would be required: “If they are involved, they can do it, but by the nature of the amounts and because they occur sporadically, it is difficult to control them”.

In short, resale is not prohibited by the current system, especially in the cultural field. The sports area is somewhat restricted, but in the cultural field there is absolutely nothing. Where cracks can be found to control people is when they are reselling on a regular basis. Or if not, when that would be consistent with the higher value obtained in the same resale, but for that it would have to be declared in the annual income statement, or there would be a particular SII”, slides.

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