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A non-profit association has enquired whether income from the sale of lottery tickets and donations received to fund such activities are exempt. The Directorate General for Taxes (DGT) has ruled that, as this constitutes an economic activity, both the income and the donations intended for it are subject to tax.
This ruling clarifies that non-profit status does not grant blanket exemption for income derived from commercial activities, even if those activities are funded by donations.
The tax team reviews your specific situation.
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