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V0739-16 24 February 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Nautical club membership and regatta fees may be VAT exempt, but mooring and maintenance services are not

A non-profit nautical club has requested a ruling regarding the VAT liability and exemptions applicable to its services. The DGT has determined that membership and regatta fees are exempt; however, services such as mooring, dry storage, or locker rentals must be taxed as they are not directly related to sporting activities.

The question raised

Issue raised: Liability for, and where applicable, exemption from Value Added Tax.

The DGT's ruling

Services provided by private non-profit sports entities to natural persons practicing sports are exempt from VAT if they are directly related to said practice. Services offered generally to boat owners, such as mooring rentals, use of storage lockers, water/electricity supply, or repairs, are not considered directly related services. Entrance fees, membership fees, and regatta fees, as well as the club's own sailing courses, do meet the direct relationship requirement.

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