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V1213-20 4 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports services provided by social entities may be exempt from VAT

A non-profit cooperative has requested clarification on whether providing sports services to users of its municipal facilities is exempt from VAT. The DGT indicates that the exemption applies if the entity qualifies as a private establishment of a social nature and the services are directly related to the practice of sport.

The question raised

Application of the exemption provided for in Article 20.One.13 of the Value Added Tax Law to the provision of sporting services to the users of such facilities.

The DGT's ruling

The exemption under Article 20.One.13 of the VAT Law requires that the services 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. To be considered an establishment of a social nature, the entity must lack a profit-making purpose, have officers serving gratuitously without interest in the results, and must not favor its members or relatives.

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