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A sports club has requested clarification regarding the taxation of martial arts instructor services. The DGT has determined that these classes are subject to VAT at the standard rate and, as the instructors do not organise their own means of production, the payments are classified as employment income.
This ruling clarifies the tax treatment for martial arts instructors, confirming the application of standard VAT rates and the classification of income as employment income rather than business income, which affects how social security and withholding taxes are applied.
The tax team reviews your specific situation.
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