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V0557-17 2 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad de carácter social

Popular races and cultural events may be VAT exempt if the entity meets social requirements

A non-profit association has enquired whether organising popular races and musical concerts is subject to or exempt from VAT. The DGT has ruled that exemption depends on whether the entity meets the requirements for a social establishment and whether the activity is specifically provided for in the law.

The question raised

Whether the aforementioned provision of services is subject to or exempt from tax.

The DGT's ruling

Popular races are exempt if they are services directly related to sports practice provided by entities of a social nature. Cultural events such as musical performances are exempt if carried out by a private cultural entity of a social nature. To be an entity of a social nature, the entity must lack a profit motive, have officers serving without remuneration or economic interest, and not grant special conditions to its members.

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