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V3656-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidad sin ánimo de lucro

Income from a sports club may be exempt from CIT and VAT depending on its corporate purpose and the nature of the activity

A non-profit sports club inquires about the exemption of its income from CIT and VAT and its obligation to register in the IAE. The DGT responds that the exemption depends on whether the income derives from its corporate purpose or from economic activities, and whether the sports services meet the requirements of a social entity.

The question raised

Question posed: Whether the income obtained by the inquiring entity is exempt from Corporate Income Tax and Value Added Tax, and whether there is an obligation to register in economic activities.

The DGT's ruling

In CIT, income is exempt if it arises from the corporate purpose and does not constitute economic activities, except for fees that do not correspond to the provision of services. In VAT, sports services are exempt if provided by social entities to natural persons. Sponsorship contracts are subject to VAT, unless they fall under the collaboration agreements of Law 49/2002. In the IAE, the obligation to register arises if economic activities are carried out through the organization of means.

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