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A foundation providing extracurricular activities has enquired whether its new physical education and sports services are exempt from VAT. The DGT has ruled that the exemption applies if the entity is of a social nature and the services are provided directly to individuals practising the sport.
This ruling clarifies the conditions under which social entities can benefit from VAT exemptions on sports-related services, specifically requiring a direct relationship with the individual practitioner.
The tax team reviews your specific situation.
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