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A sports club has requested clarification on whether rally registration fees and sponsorships are exempt from VAT. The DGT has ruled that sports services provided to individuals by social entities are exempt; however, sponsorships involving advertising are subject to the standard rate, unless they fall under business collaboration agreements.
This ruling clarifies the distinction between exempt sports services and taxable advertising sponsorships for social entities, highlighting the importance of the contractual nature of business collaborations.
The tax team reviews your specific situation.
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