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A non-profit association inquired whether its students' monthly fees are subject to VAT. The DGT ruled that services provided to members are exempt from VAT, provided they are carried out to fulfil the organisation's social purpose and no consideration is received other than the fees established in the statutes.
Question raised: Liability and, where applicable, exemption of the fees paid by the members.
Operations carried out by the association for its members are exempt from VAT if they constitute activities for the fulfillment of its corporate purpose and no consideration is received other than the fees established in the bylaws. Fees are understood to be all amounts received that constitute consideration for services in the collective interest of the members. The exemption does not apply if a price independent of the fee is invoiced to satisfy a particular interest of the member or if the activity is carried out for third parties.
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