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V0148-19 22 January 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Regulated education is VAT exempt, but book sales and classroom rentals are not

An educational company with a government grant seeks clarification on the taxation of its services, VAT deduction, and the treatment of subsidies. The DGT determines that education services are exempt, whereas the sale of materials and the rental of classrooms are subject to VAT.

The question raised

1.- Taxation of the services provided by the consulting entity.

The DGT's ruling

Regulated education is exempt from VAT if provided by authorized private entities and meets objective requirements for the transmission of knowledge. The sale of uniforms, books, and school supplies is not exempt as these constitute supplies of goods. The leasing of classrooms is a service provision subject to tax. The dining service is exempt if it is ancillary to the educational service. When performing both taxable and exempt activities, the pro rata rule must be applied for the deduction of VAT.

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