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A non-profit underwater activities club has requested clarification on whether boat maintenance fees are exempt from Corporation Tax and VAT. The Directorate General for Taxes (DGT) ruled that income from services constituting an economic activity is subject to Corporation Tax and that boat maintenance services are not exempt from VAT.
Clubs and non-profit organisations must distinguish between non-taxable social activities and commercial services that constitute economic exploitation, as the latter trigger VAT and Corporation Tax obligations.
The tax team reviews your specific situation.
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