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A local council has requested clarification regarding the application of VAT and Income Tax (IRPF) withholdings when hiring teachers for non-regulated education courses. The Directorate-General for Taxes (DGT) has determined that lessons may be exempt from VAT if specific requirements are met and that, generally, such payments constitute employment income.
This ruling clarifies the tax treatment for non-regulated educational services, distinguishing between VAT exemptions for specific teaching activities and the classification of payments as employment income versus professional services.
The tax team reviews your specific situation.
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