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A commercial company has enquired whether its services in sports facilities (membership fees, court rentals, etc.) qualify for VAT exemption. The DGT has ruled that, as a commercial company, it will be taxed at the standard rate of 21% unless it can prove it lacks a profit-making purpose and meets the requirements of a social entity.
Commercial sports entities will continue to be taxed at the standard VAT rate unless they can strictly demonstrate their non-profit status and social character.
The tax team reviews your specific situation.
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