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V1944-14 17 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Non-profit associations may apply VAT exemption on services to members without prior recognition

An olive growers' association inquired whether it could apply the VAT exemption under Article 20.One.12º without having requested prior recognition before 2013. The DGT ruled that, following the reform of Law 17/2012, prior recognition from the Administration is no longer required to apply said exemption.

The question raised

Application of the exemption provided for in Article 20.One.12 of Law 37/1992, taking into account that the consultant had not requested the prior recognition of the exemption prior to January 1, 2013.

The DGT's ruling

The provision of services and ancillary supplies of goods carried out by non-profit entities for the fulfillment of their corporate purpose, in favor of their members and for which no consideration is received other than the fees established in the bylaws, are exempt from VAT. It is not necessary to obtain prior recognition from the Tax Administration to apply this exemption, as said obligation was repealed by Law 17/2012. However, operations carried out for third parties or those for which a price independent of the statutory fee is invoiced do not benefit from this exemption.

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