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V3236-20 29 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Arbitration services may be VAT exempt if providers are public law or social entities

A non-profit association has queried whether its arbitration services for football matches are exempt from VAT. The DGT ruled that exemption is possible if the association is a public law or social entity and the services are directly related to the sporting activities of natural persons.

The question raised

Application of the exemption provided for in Article 20.One.13 of the Value Added Tax Law.

The DGT's ruling

Arbitration services are exempt if the providing entity is a public law entity or a private establishment of a social nature. The exemption requires that the services be directly related to the practice of sport by natural persons, who must be the material and effective recipients, even if the invoice is issued to another entity. If these requirements are not met, the activity shall be taxed at the general rate of 21%.

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