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A company has requested clarification on whether contributions made to sponsor foundation events are subject to VAT. The Directorate General for Taxes (DGT) has ruled that such contributions are not subject to VAT if they are formalised as business collaboration agreements under Law 49/2002; however, they will be subject to VAT if they constitute consideration for specific services provided.
This ruling clarifies the tax distinction between non-taxable sponsorship via collaboration agreements and taxable service provision, providing legal certainty for corporate social responsibility and sponsorship activities.
The tax team reviews your specific situation.
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