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V1723-17 4 July 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Fixed fees for non-profit associations may be VAT exempt if intended for the collective interest

A non-profit association has requested clarification on whether fixed and variable fees paid by its members are subject to VAT. The DGT has ruled that statutory fixed fees may be exempt if they are allocated to the collective interest, whereas variable fees charged for services of individual interest are subject to tax.

The question raised

VAT treatment of fixed and variable fees paid by members.

The DGT's ruling

The provision of services to members of non-profit entities is exempt from VAT if performed for the defense of collective interests and the consideration is the membership fee established in the bylaws. A membership fee is understood to be any amount received that constitutes consideration for services in the collective interest, whether ordinary or extraordinary. The exemption does not apply to services that satisfy the particular interests of the member through a price independent of the statutory fee.

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