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V3215-17 15 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

VAT exemption applies to sports services provided by social entities to individuals

An educational centre run by a religious congregation has requested clarification on whether leasing its sports facilities to an entity for sporting activities is exempt from VAT. The Directorate General for Taxes (DGT) has ruled that the exemption applies provided the entity is of a social nature and the services are directly related to the practice of sport by individuals.

The question raised

Whether the consulting entity can apply the exemption of Article 20.One, 13 to the activities subject to the consultation.

The DGT's ruling

To apply the exemption under Article 20.One.13, the entity must be of a social nature, lack a profit motive, and have unpaid officers. The services must be provisions of services directly related to the practice of sport or physical education by natural persons. The leasing of facilities for natural persons to practice sport is exempt, even if invoiced to a club or city council. The exemption does not apply to sporting events, catering services, or access to the premises without use of the facilities.

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