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V1279-14 13 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Requirements for applying VAT exemption on services provided by associations to their members

An economic interest grouping (AIE) has enquired whether IT support services provided exclusively to its members are exempt from VAT. The DGT outlines the requirements for exemption and the procedure for rectifying fees if they have been incorrectly charged.

The question raised

Applicability of the exemption under Article 20.One.6 of Law 37/1992, according to its new wording provided by Law 17/2012, on the General State Budgets for the year 2013.

The DGT's ruling

The exemption under Article 20.One.6 of Law 37/1992 requires that services be provided to members performing exempt or non-taxable activities without the right to deduction. The grouping must be non-profit, provide auxiliary services, and not perform activities for third parties. Furthermore, the exemption applies if the members' pro rata does not exceed 10% and the service is not used in operations with the right to deduction. To rectify excess charged fees, a corrective invoice must be issued and the choice must be made between the refund of undue payments or regularization in subsequent tax returns.

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