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V1331-17 31 May 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Membership fees for nautical clubs may be VAT exempt if social entity requirements are met

A non-profit nautical club has requested clarification on whether the membership fees charged to its members are exempt from VAT. The DGT has ruled that these fees may be exempt provided the club meets the requirements of a social entity and the services provided are directly related to the practice of sport.

The question raised

Possible exemption from Tax on the membership fee charged to members.

The DGT's ruling

The exemption under Article 20.One.13 of Law 37/1992 applies to periodic membership fees and club entrance fees if the provider is an entity of a social nature. To this end, the provision must be a service directly related to the practice of sport or physical education. The exemption does not apply to indirect services such as mooring, dry docking, fuel supply, or vessel maintenance, which shall be taxed at the general rate.

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