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A non-profit sports association has requested clarification on whether membership fees and the sale of beverages during matches are exempt from VAT. The Spanish Tax Agency (DGT) ruled that membership fees may be exempt if the entity qualifies as a private establishment of a social nature and the service is related to sport, whereas the sale of beverages remains subject to VAT.
This ruling clarifies the distinction between social membership services and commercial activities within non-profit sports clubs, affecting how VAT is applied to different revenue streams.
The tax team reviews your specific situation.
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