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V1895-20 11 June 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · agrupación de interés económico

Services provided by an AIE to its members may be VAT exempt if funded through statutory fees

An Economic Interest Grouping (AIE) of insurers has requested a ruling on whether its tax resource management services are exempt from VAT. The DGT has determined that the exemption for groupings (Art. 20.One.6º) does not apply; however, the exemption for non-profit organisations (Art. 20.One.12º) may apply if the services are provided in the collective interest and are funded via statutory fees.

The question raised

Application of the exemption provided in Article 20.One.12 of the Value Added Tax Act to the services provided by the applicant.

The DGT's ruling

The exemption provided in Article 20.One.12 of the VAT Act is applicable to services provided by non-profit entities for the defense of the collective interests of their members. To this end, the consideration must be limited to the membership fees established in the bylaws, without independent prices being charged to satisfy the particular interests of members. The fact that fees vary according to the volume of premiums of the members does not prevent the application of this exemption.

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