Skip to content
Back to index
V0637-14 10 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · concesión administrativa

Administrative concessions for the operation of sports facilities are not subject to VAT

A local council has requested clarification on whether the fee payable to a concessionaire for the management of sports facilities is subject to VAT. The Directorate General of Taxes (DGT) has ruled that, as it concerns an administrative concession for the operation of public services, the transaction is not subject to the tax.

The question raised

VAT liability of the fee to be paid by the concessionaire.

The DGT's ruling

The administrative concession for the operation of sports facilities is not subject to VAT, therefore the City Council must not charge tax to the concessionaire. The fact that the City Council pays a fixed amount to the concessionaire as remuneration does not change this condition of non-subjectivity. However, the services provided by the concessionaire to end users could be subject to the tax.

Book your free first meeting