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A non-profit nautical club has requested clarification on whether the membership fees charged to its members are exempt from VAT. The DGT has ruled that these fees may be exempt provided the club meets the requirements of a social entity and the services provided are directly related to the practice of sport.
Nautical clubs and non-profit sports organisations must ensure they meet specific 'social entity' criteria and maintain a direct link between services and sporting activities to qualify for VAT exemptions on membership fees.
The tax team reviews your specific situation.
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