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V2901-17 13 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption on sports services for social entities and standard rate for others

A non-profit nautical club has requested clarification regarding VAT exemptions for its activities and the applicable tax rate. The DGT clarifies that services directly related to sports practice are exempt, provided the requirements for a social entity are met, whereas all other services are subject to the standard VAT rate.

The question raised

Possible exemption from Tax for any of the aforementioned concepts and the applicable tax rate for activities that are not exempt from Tax.

The DGT's ruling

Services provided to natural persons for the practice of sport are exempt if performed by an entity of a social nature and the service is directly related to said practice. Membership fees, entrance fees, and participation fees in regattas, as well as sailing courses taught by the club itself, are considered exempt. Conversely, services such as moorings, hauls, supplies, premises rental, or sale of sporting equipment are taxed at the general rate of 21%.

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