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V0113-17 20 January 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports teaching and camp services may be VAT exempt if the provider meets legal requirements

A municipal board has inquired whether subcontracted sports teaching and camp services are exempt from VAT. The DGT ruled that exemption depends on whether the provider is a public law entity, a federation, an Olympic/Paralympic committee, or a private sports facility of a social nature.

The question raised

Tax treatment regarding services contracted with various entities.

The DGT's ruling

For sports practice services to be exempt, the recipient must be a natural person, even if the invoice is issued to another entity that is the material recipient of the service. Furthermore, the provider must be a public law entity, a sports federation, an Olympic or Paralympic Committee, or a private sports establishment of a social nature. If the provider does not meet these subjective requirements, the transaction shall be taxed at the general rate of 21%.

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