VAT Exemption on Member Fees

Article 20 of the Spanish VAT Act (LIVA) provides a specific exemption for services rendered to individuals practising sport by public-law entities, sports federations, clubs and non-profit sports entities. The exemption covers the fees the club charges members for participating in the sports activities that constitute its corporate purpose.

It is not automatic: it requires the club to be non-profit (consistent statutes, no profit distribution), the considerations (fees) to cover only sport-service expenses and the activities to fall within the club's corporate purpose. Binding queries from the Directorate-General for Taxation (DGT) are the reference for applying it correctly.

Applies when a non-profit amateur sports club charges its individual members for sport practice. Does NOT apply to: rental of facilities to non-members or third parties (subject to general VAT), sponsorship and advertising (subject to VAT), merchandise sales, hospitality from the club bar (subject to its corresponding VAT). That's why many clubs are partially exempt entities.

• Applying the exemption to non-member activities: it only covers members. Renting a court to a non-member is taxable.
• Forgetting the exemption doesn't apply to sponsorship or merchandise: these commercial activities always carry VAT.
• Not consulting DGT binding rulings: nuances (extraordinary fees, levies) have been clarified in specific queries.
• Assuming the exemption without registry inscription: the tax authority may not recognise the club nature without evidence.

If you care about this term, you probably also wonder about these:

• Partially Exempt Entities (IS)

  Tax

• Modelo 303 (Quarterly Spanish VAT)

  Tax

• Ley 49/2002 (Public Utility Regime)

  Tax

• Monthly Fee (Cuota Mensual)

  Billing & payments

• Modelo 200 (Spanish Corporate Tax Return)

  Tax

Long-form guides and product pages where we cover this topic in depth:

• Sports-club taxation: VAT, IS and member fees (2026)

  Full guide