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V0128-16 19 January 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario

Variable-cost photocopying service provided by a professional association is not VAT exempt

A professional association sought clarification on whether the photocopying services provided to its members for a specific fee were exempt from VAT. The Directorate General for Taxes (DGT) ruled that, as the price is independent of statutory membership fees, the transaction is subject to VAT.

The question raised

Liability and, where applicable, exemption from Value Added Tax.

The DGT's ruling

Professional associations are considered taxable persons for VAT purposes. The exemption under Article 20.One.12º only applies to services provided to their members without consideration other than the membership fees established in their statutes. If the service is invoiced at a price independent of the membership fee to satisfy a particular interest of the member, such as the use of photocopiers with variable fees based on consumption, the transaction is subject to VAT at the standard rate.

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