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A local council has enquired whether it must issue an invoice for membership fees paid to an association of municipalities dedicated to sports. The Directorate General for Taxes (DGT) has determined that the service is not subject to VAT and, as it has no impact on the tax settlement, there is no obligation to issue an invoice.
Question raised: Obligation to issue an invoice documenting the services provided to the applicant.
The services of an association of municipalities that are not included in the list of article 7.8 of Law 37/1992, such as the promotion of sports, are not subject to VAT when provided to the Public Administrations to which they belong. As they are non-subject operations without impact on the tax settlement mechanism, there is no obligation to issue an invoice, although other documents may be used to document the operation.
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