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A sports federation has requested clarification on whether its sporting services are VAT exempt when invoicing an entity that is not a club or sports organisation. The Directorate-General for Taxes (DGT) ruled that the exemption applies provided the services are rendered directly to individuals engaged in sport or physical education.
This ruling clarifies the application of VAT exemptions for sports federations, confirming that the identity of the invoicing party does not override the nature of the service recipient.
The tax team reviews your specific situation.
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