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V1741-22 21 July 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tasa

Fees charged by a Professional Association for vehicle management services are subject to VAT at 21%

An administrative manager inquires whether the fees paid to their Professional Association for vehicle transfer services constitute taxes or public prices and their VAT treatment. The DGT determines that they are neither taxes nor public prices and that the provision is subject to VAT as it is not an activity of collective interest covered by the exemption.

The question raised

Question raised: Whether the consideration charged by the Official Association of Administrative Managers is considered a tax or public price and its implications for Value Added Tax purposes.

The DGT's ruling

Professional Associations are not Public Administrations, therefore their charges are not taxes or public prices, but rather private law considerations. The services of validating and printing registration certificates for managers satisfy a particular interest and not the collective interest of the members, therefore they do not benefit from the exemption under Article 20.One.12 of the VAT Law. Consequently, these provisions are subject to the general rate of 21%.

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