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V3524-15 16 November 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Membership fees may be exempt from VAT if they are intended for the collective interest and not for private interests

A non-profit association inquires whether its members' fees and its services are subject to VAT and how it should deduct the input tax. The DGT determines that fees for collective purposes are exempt, but services with an independent price or for third parties are subject to tax.

The question raised

Question raised: Exemption of the fees paid by members, as well as the services provided by the association to its members or to third parties. Deductibility of input VAT.

The DGT's ruling

The provision of services and ancillary supplies of goods carried out by non-profit entities for the defense of the collective interests of their members are exempt from VAT, provided that no consideration other than the fees established in the bylaws is received. Services invoiced at a price independent of the fee to satisfy the private interests of the member, as well as activities for third parties, are subject to the tax. When performing both exempt and taxable operations, the entity must apply the pro rata rule for the deduction of input VAT.

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