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Contractual grants to sports clubs are not necessarily subject to VAT

The dispute was based on typical facts that can be found in many sports clubs in Germany. The plaintiff sports club was allowed to use the sports facility owned by the municipality free of charge. In return, the club undertook to manage the entire sports facility (including cleaning the sports center and tending the green areas) in a usage contract. In the contract of use, the municipality assured the association of various flat-rate operating cost subsidies (e.g. EUR 4,500 for taking over the management). However, the municipality did not reserve the right to use or designate it (ban on school sports or similar).

Source KMLZ

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