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V2834-14 20 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports club membership fees may be VAT exempt if the entity is a social establishment

A non-profit sports club has enquired whether its monthly membership fees are exempt from VAT. The DGT has ruled that the exemption applies if the entity meets the requirements of a private establishment of a social nature and the services are directly related to sporting activities.

The question raised

Exemption of the monthly fee paid by its members to said entity.

The DGT's ruling

Services provided to natural persons practicing sports are exempt from VAT if they are provided by entities of a social nature and are directly related to said practice. To be considered an entity of a social nature, the entity must lack a profit-making purpose, have unpaid positions without economic interest, and not grant special conditions to its members. The exemption does not apply to the supply of goods or to sporting events. If these requirements are not met, the general rate of 21% shall apply.

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