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V0386-18 14 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Legal services provided by a trade union foundation are VAT exempt if funded through statutory membership fees

Two trade union federations requested clarification on whether legal services provided by an affiliated non-profit foundation are exempt from VAT. The Directorate-General for Taxes (DGT) ruled that the exemption applies if services are provided to members without charging anything beyond the fees established in the foundation's statutes.

The question raised

Exemption of the individual and collective legal services provided by the Foundation and financed by the described transfers.

The DGT's ruling

The exemption under Article 20.One.12 of Law 37/1992 applies to services provided by non-profit entities for the defense of the collective interests of their members. For this to apply, no consideration other than the contributions established in the statutes may be received from the beneficiaries. In this case, as the foundation is financed through transfers from the federations and an additional one euro provided for in the statutes, the legal services (individual or collective) are exempt.

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