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V1406-18 28 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Contributions from regional federations to amateur football clubs are not subject to VAT

A regional football federation has requested a ruling on whether the transfers it must make to amateur football clubs, under current regulations, are subject to VAT. The DGT has ruled that these contributions do not constitute a transaction subject to the tax.

The question raised

Issue raised Treatment for Value Added Tax purposes of the aforementioned contributions that the applicant will have to make.

The DGT's ruling

The contributions made by the federation to amateur football teams in compliance with legal obligations do not constitute consideration for any transaction subject to VAT. There is no legal relationship of exchange of reciprocal benefits where the amount serves as the consideration for a service. As there is no specific advantage for the recipient that determines an act of consumption, there is no transaction subject to the tax.

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