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A non-profit association has requested clarification regarding the VAT treatment of its membership fees, donations and services. The Directorate General for Taxes (DGT) has ruled that membership fees may be exempt from VAT if they are used for collective purposes, whereas donations are not subject to tax provided there is no consideration.
This ruling clarifies the tax distinction between non-taxable donations and potentially exempt membership fees, helping non-profit organisations correctly manage their VAT obligations.
The tax team reviews your specific situation.
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