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A Municipal Sports Board has requested clarification on whether services provided by sports clubs to their members are exempt from VAT when the Board compensates the expenses. The Directorate General for Taxes (DGT) ruled that these services are exempt provided the club has a social character and the activity is directly related to sports practice by an individual.
This ruling clarifies the VAT exemption criteria for social sports clubs, specifically regarding the nature of the entity and the direct link between the service and the individual's sporting activity.
The tax team reviews your specific situation.
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