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V3183-14 27 November 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports services provided by a public limited company may be VAT exempt if classified as a social entity

A public limited company offering golf and catering services has requested clarification on whether it can apply the VAT exemption for sports services. The DGT indicates that although its current articles of association allow for the distribution of dividends, it could access the exemption if it amends its articles to meet the requirements of a social entity.

The question raised

Eligibility for the exemption provided for in Article 20.One.13 of Law 37/1992.

The DGT's ruling

For sports services provided to natural persons to be exempt, the provider must be an entity of a social nature. Although a public limited company has an intrinsic profit-making purpose, this does not prevent it from being considered non-profit if its articles of association prohibit the distribution of profits to members and allocate them to the corporate purpose. The exemption applies to services directly related to sports practice, regardless of the consideration.

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