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A public limited company operating sports facilities has enquired whether its services may be exempt from VAT. The DGT has ruled that, despite being a commercial company, it may be considered a social entity if its objective is not the systematic pursuit of profit for its members.
This ruling clarifies the criteria for VAT exemption in the sports sector, distinguishing between purely commercial activities and those fulfilling a social purpose, even when conducted by a public limited company.
The tax team reviews your specific situation.
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