Association: am I subject to VAT?
Associations and, more generally, non-profit organizations (foundations, endowments) are not subject to the commercial taxes of VAT and corporate income tax.
To be exempt from this taxation, the organisation must meet the following criteria:
- The management must not display self-interest
- The organization must be managed and administered on a voluntary basis by persons who have no direct or indirect interest in the results of the operation themselves, or through an intermediary
- The organization must not make any direct or indirect distribution of profits
- The members of the organisation and their successors may not be declared beneficiaries of any part of the assets, with the exception of the right to recover their contributions
- Its activity must not compete with the commercial sector or, if there is competition, must be carried out under conditions different from those of the commercial sector
- The organisation must not maintain any close relationships with commercial companies
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