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A non-profit association has requested clarification on whether fixed and variable fees paid by its members are subject to VAT. The DGT has ruled that statutory fixed fees may be exempt if they are allocated to the collective interest, whereas variable fees charged for services of individual interest are subject to tax.
This ruling clarifies the distinction between membership fees used for common goals and fees charged for specific services, helping non-profits correctly apply VAT exemptions.
The tax team reviews your specific situation.
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