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V0633-14 10 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

Mediation services by an athletics race organiser subject to 21% VAT

A sports club has requested clarification on the VAT rate applicable to services provided by a commercial company organising a public athletics race. The Directorate General for Taxes (DGT) has ruled that the mediation services provided by the organiser to the club are subject to the standard rate of 21%.

The question raised

Applicable tax rate for the aforementioned services provided by commercial companies to the sports club promoting the event.

The DGT's ruling

Mediation services provided on behalf of others by a commercial entity to a sports club for the purpose of organizing events are not subject to the reduced rate of 10% applicable to amateur sporting events. These mediation services must be taxed at the general rate of 21%. The exemption for sporting services only applies if the services are provided directly by public law entities, federations, or establishments of a social nature to natural persons.

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