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A civil society firm has requested clarification on the taxation of childcare services and school tutoring. The DGT has ruled that tutoring classes are exempt from VAT provided the subjects belong to the formal education system, whereas childcare is subject to the reduced rate unless provided by a social welfare entity.
This ruling clarifies the VAT treatment for educational and childcare services, distinguishing between curriculum-based tutoring and general childcare based on the provider's legal status and the nature of the service.
The tax team reviews your specific situation.
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