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V0562-20 9 March 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad sin ánimo de lucro

Association fees and roadside assistance may be exempt from VAT depending on their nature

A non-profit entity has requested a ruling regarding the taxation of its membership fees and assistance services. The DGT has determined that fees that do not provide individual benefits are exempt, and that roadside assistance provided by the entity itself is considered an insurance operation and is therefore exempt.

The question raised

The following questions are raised in relation to Value Added Tax:

The DGT's ruling

Membership fees are exempt if they do not involve a specific and individualizable benefit for the member. Roadside assistance provided by the entity using its own resources is an exempt insurance operation. The rebilling of third-party insurance is only exempt if the exact amount of the premium is invoiced. Mediation services are exempt if they include customer acquisition or the execution of the contract.

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