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V0071-17 17 January 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Membership fees for non-profit sports entities may be VAT exempt subject to specific requirements

A non-profit sports association has requested clarification on whether membership fees and the sale of beverages during matches are exempt from VAT. The Spanish Tax Agency (DGT) ruled that membership fees may be exempt if the entity qualifies as a private establishment of a social nature and the service is related to sport, whereas the sale of beverages remains subject to VAT.

The question raised

Exemption of the monthly fee paid by its members to said entity, as well as the sale of beverages for the purpose of maintaining the association.

The DGT's ruling

Membership fees are exempt from VAT if the entity is a private institution of a social nature and the services are directly related to the practice of sport by natural persons. This exemption does not apply to the supply of goods or to activities that contribute indirectly to the practice of sport. The sale of beverages for immediate consumption on the premises is subject to VAT at the reduced rate of 10% as it constitutes a catering service.

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