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V4108-15 21 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Variable consumption fees in associations are not VAT exempt if they are not the statutory fee

An association distributing water has requested clarification on whether services provided to its members are VAT exempt. The DGT has ruled that operations subject to variable fees based on consumption do not meet the requirements for VAT exemption for non-profit entities.

The question raised

Exemption of operations carried out by the consulting Association whose recipients are its members.

The DGT's ruling

The exemption under Article 20.One.12 of Law 37/1992 applies to services provided to members by non-profit entities provided that no consideration other than the contributions established in their bylaws is received. Contributions are understood to be those which all members have the right to pay equally to achieve the entity's objective. Therefore, if the association invoices a price independent of the annual fee to satisfy a particular interest of the member, such as water consumption, the transaction is subject to VAT.

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