VAT rate for group fitness classes

The issue still of considerable doubt among taxpayers operating in the fitness industry is the attribution of the appropriate VAT rate to the services of group activities.

It would seem that the case was settled in the case-law of the Supreme Administrative Court. By judgment of 30 January 2014[1] it concluded that the reduced, 8% the VAT rate applies to typical services provided by the gyms and does not apply to services that are not related to its normal use, such as restaurant services at the club, the purchase of drinks, supplements or instructor services.

Possible use 8% VAT rates for the type of services concerned are confirmed by the Director of National Tax Information in the latest binding rate information

Case law of the NSA

At the same time, judicial caselaw finds judgments on first They seem to contradict the above thesis.

By judgment of 7 March 2018[2], The NSA stated that the company could not apply a preferential VAT rate to services consisting in the conduct of sports activities for parents and children under the supervision of the trainer to improve mobility, develop perseverance or develop football techniques.

In the opinion of the NSA, the main purpose of acquiring such services is not the mere introduction for the use of the facility, but, above all, the care of the trainer, who serves as a person teaching specific behaviour or sports discipline.

At the same time, the court pointed out explicitly that the nature of the services provided by the company cannot be classified as aerobic or fitness classes or as a gym.

It should therefore be considered that second of these judgments, the NSA confirmed that the possibility of applying 8% VAT rates for "other services related to recreation - only for admission", including group activities at gyms and similar facilities, also apply to services whose main focus is on the use of the facility's infrastructure, and the participation or support of a staff trainer is of a side-line nature.

Judgment of the Court of Justice

This approach is also based on the most recent case law of the CJEU, which in its judgment of 22 September 2022[3], considers that the provision of services consisting in granting the right to use gym sports facilities and in granting individual or group support may be subject to a reduced VAT rate where this support is linked to the use of these facilities and is necessary for the exercise of sport and physical education or where this support is of an additional nature to the right to use them or to their actual use.

At the same time, the possibility of application 8% VAT rates for the type of services concerned are confirmed by the Director of National Tax Information in the latest binding rate information[4].

In the light of the above considerations, it should be assumed that group activities, such as fitness in gyms and other similar facilities, may in principle benefit from preferential VAT, but provided that the assistant of the trainer conducting such classes is of an additional nature and does not constitute the main objective of the service.

[1] NSA judgment of dn. 30 January 2014, reference no. I FSK 311/13

[2] NSA judgment of dn. 7 March 2018, reference no. I FSK 853/16;

Author: Jan Markowicz Advocate, graduate of the Faculty of Law and Administration of the University of Silesia in Katowice in the direction of Law. In professional practice, it focuses on the legal and tax service of economic operators and individuals. Author of publications and articles on tax law.