Back to index
V0898-16 10 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports services subject to 21% VAT unless the entity is an exempt private social establishment

A commercial company has enquired whether its services in sports facilities (membership fees, court rentals, etc.) qualify for VAT exemption. The DGT has ruled that, as a commercial company, it will be taxed at the standard rate of 21% unless it can prove it lacks a profit-making purpose and meets the requirements of a social entity.

The question raised

Applicable tax rate and, where applicable, whether the exemption under Article 20.One, 13º could apply to the activities subject to the consultation.

The DGT's ruling

The exemption under Article 20.One.13º requires that services be provided by public law entities, federations, or private establishments of a social nature. For a company to be considered of a social nature, it must lack a profit-making purpose, which implies that the systematic achievement of profits for its members is not its objective. If these requirements are not met, sports services are taxed at the general rate of 21%.

Book your free first meeting