Knowledge Group Position Published on Sports Exemption

• The Dutch VAT knowledge group issued a position on applying the sports exemption to allowing people to use sports facilities and to making sports equipment available by an educational institution.
• The case concerns a non-profit university that operates a sports center where students, staff, and third parties can exercise for a fee.
• The university’s educational activities are already exempt under Article 11(1)(o) of the Dutch VAT Act.
• The key issue is whether charges for access to the sports center and use of sports equipment fall within the VAT sports exemption.

Source: futd.nl

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Knowledge group: sports exemption applies to university sports school, not to rental of sports equipment

• Scope of the Sports Exemption: A university operating a non-profit sports centre can apply the VAT sports exemption (Article 11(1)(e) of the VAT Act 1968) to fees charged to students, staff, and third parties for the right to play sports and use the facilities, even if the activity is not tied to exempt education.
• Commercial Competition Allowed for Access: Competing directly with commercial fitness centers does not bar the facility-use fees from qualifying for the exemption, as Court of Justice case law (Bridport and West Dorset Golf Club) confirms that such competition is inherent to the sports exemption.
• Exclusion for Equipment Rentals: The exemption does not cover renting out sports equipment (e.g., tennis rackets) for a fee; because these ancillary services generate additional revenue in direct competition with commercial vendors, they are excluded under Article 11(2) and remain subject to VAT.

Source Taxlive

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See also Flashback on ECJ Cases – C-495/12 (Bridport and West Dorset Golf Club) – Supply of services to non-members of a golf club not excluded from VAT exemption – VATupdate

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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