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V0054-19 4 January 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario

Non-profit associations may be subject to VAT on services provided to members and third parties

A trade association sought clarification on whether its parking and leasing services were subject to VAT. The DGT ruled that the association acts as a taxable person and that services provided to members at a price independent of membership fees, as well as services provided to third parties, are subject to VAT.

The question raised

Question posed: Whether the consultant holds the status of a taxable person or professional for the purposes of Value Added Tax and the taxability of the operations subject to this consultation. Also, whether she is obliged to bear the tax impact imposed by other taxable persons or professionals and the applicable deduction regime.

The DGT's ruling

The association holds the status of a taxable person when it carries out onerous activities. The benefits to members exempt under Article 20.One.12º are only those financed through statutory fees for collective purposes. Services provided to members at a price independent of the fee or for private interests are subject to tax and not exempt. The gratuitous provision of services due to a legal obligation may not be subject to tax.

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