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A query is made regarding whether the acquisition of hunting rights on public lands and the fees of a hunters' association are subject to VAT. The DGT determines that the transfer of hunting rights is subject to the general rate and that association fees may be exempt if the requirements for a social entity are met.
Question posed: Taxability of the described operations and, in particular, whether any of them is exempt from Value Added Tax.
The transfer of hunting rights is not an exempt land lease, but rather an operation subject to the general rate of 21%. On the other hand, services provided by sports associations to natural persons may be exempt if the entity is of a social nature and the services are directly related to the practice of sport. This exemption does not apply to the supply of goods, such as the delivery of hunted game.
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