Football sports camps will be taxed at 10% or 21% VAT depending on their nature

The determination of the tax rate applicable to the organization of sports camps that include accommodation and catering services has been clarified by the Tax Administration. The nature of the service and the framework in which the activity is carried out define whether the reduced rate or the general rate applies.

What the DGT has resolved

The Dirección General de Tributos (DGT) establishes that the organization of these camps constitutes a single supply in which the sporting activity acts as the main element. Under this criterion, the application of the tax rate is divided into two clear scenarios:

• 10% Rate: This will apply only if the camp is carried out within the framework of a social assistance program.
• 21% Rate: This will apply in any other case, including those where the activity does not have a social assistance purpose.

Furthermore, the resolution clarifies that it is not possible to apply the exemption for establishments of a social nature if the organizing entity has a commercial nature.

What this means for you

If you manage a commercial entity that organizes sports camps, the classification of your service is decisive for the correct settlement of Value Added Tax (IVA). It is not enough to offer accommodation or food services; it is the purpose of the program that will dictate the tax rate. Companies operating outside the scope of social assistance must apply the general rate of 21%, which will directly impact the final price for the consumer.

What should be done

It is necessary to analyze the structure of the services offered and the purpose of the programs to determine the correct VAT rate. Correct classification avoids billing errors and potential contingencies with the Administration. It is recommended to assess the nature of the organizing entity and the inclusion of the activity in social programs to ensure that the rate applied is the one that legally corresponds to the supply.