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V1305-22 9 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Membership fees and cultural activities may be VAT-exempt if social entity requirements are met

A non-profit association seeks clarification on VAT exemption for membership fees, sports and cultural activities, as well as the treatment of sponsorships and grants. The DGT states that exemption depends on the nature of the entity and whether services are provided for collective benefit or meet social entity requirements.

The question raised

Exemption of fees charged to members, both periodic and for specific activities. Income to be taken into account for the calculation of the pro rata. In the event that the exemption is applicable, the method for calculating and rectifying the submitted tax returns. In relation to real estate development, the investment of the taxable person and the applicability of the pro rata.

The DGT's ruling

Membership fees are exempt if they are paid to fulfill the corporate purpose and there is no consideration other than those established in the bylaws. Sports services are exempt if the entity is a private establishment of a social nature and are provided to natural persons. Advertising sponsorship is subject to VAT, whereas business collaboration agreements may not be. Subsidies linked to the price form part of the taxable base, except for those related to the management of public services or general interest without identifiable recipients.

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