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V0593-25 1 April 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Consortium fees may be VAT-exempt under specific conditions

A consortium asks whether its membership fees are subject to VAT, whether it can deduct VAT on its expenses, and whether it must file declarations. The tax authority responds that fees may be exempt if the consortium is a non-profit entity acting in the public interest, but in such cases it cannot deduct VAT on its purchases except on a pro-rata basis.

The question raised

For the purposes of Value Added Tax, it is questioned whether the contributions of its members must include the output tax and whether they may deduct the input tax on their acquisitions of goods or services, as well as whether they must file a tax return for said tax.

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