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A query was raised regarding whether chess and basketball classes are exempt from VAT, whether taught by a professional or a non-profit association. The DGT ruled that classes taught by professionals are subject to the standard rate, whereas an association may only apply the exemption if it is a social entity and meets all legal requirements.
This ruling clarifies the distinction between professional services and social activities, determining the VAT treatment for sports-related instruction based on the provider's legal status.
The tax team reviews your specific situation.
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