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V5123-26 7 July 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · patrocinio

Foundation activities may be subject to VAT depending on their nature

A foundation seeks clarification on VAT treatment for a benefit gala, including sponsorship, corporate solidarity tables, and volunteer services. The DGT states that the promotion of collaboration agreements is exempt from VAT, whereas advertising sponsorship is taxable, and corporate volunteer organisation services are subject to the standard rate.

The question raised

The taxation under Value Added Tax of the described operations is raised, as well as the right to deduction and the formal obligations of the consultant.

The DGT's ruling

Business collaboration agreements for activities of general interest do not constitute a provision of services and are not subject to VAT. In a gala, sponsorship and the solidarity table may separate the dissemination (not subject) from access to the gala (exempt if cultural or subject to 10% or 21%). The zero queue is not subject to VAT due to a lack of reciprocity. Corporate volunteering organized by the foundation is subject to the general rate of 21%.

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