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V1070-22 12 May 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Chess and basketball classes taxed at 21% if provided by a professional, but may be exempt if provided by a social entity

A query was raised regarding whether chess and basketball classes are exempt from VAT, whether taught by a professional or a non-profit association. The DGT ruled that classes taught by professionals are subject to the standard rate, whereas an association may only apply the exemption if it is a social entity and meets all legal requirements.

The question raised

Exemption from Value Added Tax for chess and basketball classes, whether provided by a natural person professional or by a non-profit association.

The DGT's ruling

Chess and basketball classes are neither individual classes nor exempt teaching, as they are considered sports practice services. If provided by a self-employed professional, they are taxed at the general rate of 21%. The exemption only applies if provided by a private entity or establishment of a social nature, provided that the services are directly related to the practice of sport by natural persons.

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