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V0655-16 17 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Chess club services may be VAT exempt if social entity requirements are met

A non-profit chess club has enquired whether its activities are exempt from VAT. The DGT has ruled that chess practice constitutes a sport, and the exemption applies provided the entity meets the requirements of a private establishment of a social nature and the services are directly related to sporting practice.

The question raised

Whether the exemption of Article 20.One.13º is applicable to the activities subject to consultation.

The DGT's ruling

The exemption under Article 20.One.13º is applicable to sports practice services provided by entities of a social nature to natural persons. To this end, the operations must be service provisions directly related to sport and the entity must lack a profit motive with free charges. If these requirements are not met, the general rate of 21% shall apply.

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