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V1144-17 12 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports services provided by social entities may be exempt from VAT

A Provincial Council has requested clarification regarding VAT exemptions on subsidies granted to social entities for sports services. The Directorate General for Taxes (DGT) clarifies that the exemption applies to services directly related to sports activities carried out by individuals, provided the provider is a social or public entity.

The question raised

Scope of the exemption contained in Article 20.One.13 of Law 37/1992.

The DGT's ruling

To apply the exemption under Article 20.One.13 of Law 37/1992, the services must be provisions of services directly related to the practice of sport or physical education by a natural person. The provider must be a public law entity, a federation, an Olympic/Paralympic committee, or a private establishment of a social nature. The exemption does not apply to sporting events, deliveries of goods, or indirect services such as cleaning, security, or catering.

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