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V1326-17 30 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · encomienda de gestión

Sports services provided by a public entity via management mandate may be exempt from VAT

A query was raised regarding whether sports services provided by a public company through a management mandate from an Autonomous Community are subject to VAT. The DGT ruled that they are not subject to VAT if the entity acts as an instrumental internal resource and the service does not fall under the specific business activities listed in the law.

The question raised

Taxation of the operation under Value Added Tax.

The DGT's ruling

Services provided by a public entity through a management mandate are not subject to VAT if the entity holds the status of an instrumental in-house unit and technical service of the Administration and the service is not among the activities listed in Article 7.8 of Law 37/1992. However, if the entity is a public commercial company, services to third parties shall be subject to the tax. Sports services provided to natural persons may be exempt if they meet the requirements of Article 20.one.13 of Law 37/1992.

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