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A local council has requested clarification on whether renting facilities from a non-profit sports club for municipal schools is exempt from VAT. The Directorate General for Taxes (DGT) ruled that the exemption applies if the club is a social entity and the services are directly related to sporting activities carried out by individuals.
This ruling clarifies the VAT status for municipal agreements with non-profit sports clubs, provided the social nature of the entity and the direct link to physical sporting activities are maintained.
The tax team reviews your specific situation.
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