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V0956-14 3 April 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entidad de carácter social

Sports services provided by social entities may be VAT exempt if directly related to sporting activities

A non-profit nautical club has requested a ruling regarding the VAT exemption or applicable rate for its sporting and general services. The DGT indicates that if the entity is of a social nature, services directly related to the practice of sport are exempt, whereas all other services are subject to the standard rate.

The question raised

Exemption from Tax, where applicable, or the applicable tax rate for its sporting activities, as well as for general services.

The DGT's ruling

Social entities may apply the exemption provided in Article 20.One.13 of Law 37/1992 to services provided to natural persons that are directly related to the practice of sport. The exemption does not apply to the supply of goods or to indirect services such as mooring, fuel supply, or premises rental, which are taxed at the general rate of 21%. Business collaboration agreements in activities of general interest do not constitute a supply of services subject to VAT. Sailing courses taught by the club itself are considered directly related services and are exempt.

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