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A non-profit association has requested a ruling regarding the VAT liability and exemptions applicable to its activities, fees, and sponsorships. The Directorate General for Taxes (DGT) clarifies that services provided to members are exempt if funded solely through statutory membership fees, but remain subject to VAT if independent pricing or advertising sponsorships are involved.
This ruling provides legal certainty for non-profit organisations regarding the VAT treatment of member services, distinguishing between essential membership fees and commercialised services or sponsorships.
The tax team reviews your specific situation.
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