Back to index
V0346-19 18 February 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sales of materials to members at an independent price are not exempt from VAT

A non-profit association inquires whether the sale of materials to its members and third parties is exempt from VAT. The DGT responds that sales of materials are subject to the tax and that the exemption only applies to services for collective interests financed through statutory membership fees.

The question raised

Question posed: Liability to Value Added Tax for said operations and, if so, whether they would be covered by the exemption provided for in Article 20. One 12º of the Tax Law. In the event that the exemption cannot be applied, the possibility of deducting the input VAT incurred in the operations referred to the purchase of materials.

The DGT's ruling

Sales operations of materials are subject to VAT and do not benefit from the exemption under Article 20.One.12º. The exemption only applies to services and ancillary goods provided to members for the defense of collective interests, provided that no consideration other than the fees established in the statutes is received. If an independent price is invoiced to satisfy a particular interest of the member, the exemption does not apply. For the deduction of input VAT, the pro-rata rule must be applied if taxable activities coexist with exempt activities within the same differentiated sector.

Email
Contact