Extracurricular activities are those that are carried out outside school hours and that complement the training of students. In the sports field, they can include from introductory classes to a specific sport to more advanced training.

In general, non-profit sports clubs are exempt from applying VAT on these activities, provided that the following conditions are met:

  • The club is social and non-profit.
  • The activities are aimed at students from educational centers.
  • Extracurricular activities are related to the main activity of the club.

For example, if a basketball club organises classes for primary school children, these activities will be exempt from VAT as long as the club meets the above requirements. However, if the club organises activities that are not directly related to sports, such as urban or summer camps, the VAT exemption may not apply.

It is important that the club keeps the following documentation to justify the VAT exemption:

  • Collaboration agreement with the school, if any, specifying the activities to be carried out, the recipients and the economic conditions.
  • Invoices issued and received, both to justify income and expenses related to the development of the extracurricular activity.
  • Proof of payment made.

In addition, if it is necessary to hire teachers or monitors for the development of the extracurricular activity, the club will have to make the corresponding withholdings for Personal Income Tax.

For example, if a football club enters into an agreement with a school to organise football lessons for pupils aged 6 to 12:

  • Invoices issued by extracurricular classes will be exempt from VAT as they are directly related to the practice of sports.
  • If teachers or monitors are hired to teach these activities, the corresponding Personal Income Tax withholdings must be made.

In summary, non-profit sports clubs that organise extracurricular activities related to their main activity and aimed at students from educational centres can benefit from the VAT exemption, provided that they meet the aforementioned requirements and maintain the appropriate documentation.