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V2629-17 16 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Membership fees of non-profit associations may be exempt from VAT if they are intended for the collective interest of their members

A non-profit association inquires whether the collection of its annual fee to organize cultural and bullfighting activities is exempt from VAT. The DGT responds that fees are exempt if they are collected to fulfill purposes of collective interest and not to satisfy the particular interests of the members.

The question raised

Question raised: Whether the collection of the aforementioned annual fee is exempt from Value Added Tax.

The DGT's ruling

Fees established in the bylaws are exempt from VAT when the non-profit entity provides services in the collective interest of its members. The exemption does not apply if a price independent of the fee is invoiced to satisfy the particular interests of the members. On the other hand, musical performances or cultural manifestations may be exempt if the entity meets the requirements of a social establishment.

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