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V0208-14 29 January 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Music and dance teaching exempt from VAT only if part of a curriculum and not merely recreational

An academy has enquired whether music and dance teaching is subject to VAT. The DGT has ruled that the exemption depends on the activities being part of a recognised curriculum and not being of a merely recreational nature.

The question raised

Question raised: Taxation under Value Added Tax for the described activities.

The DGT's ruling

The exemption for teaching requires a subjective requirement (an authorized entity whose activities consist primarily of teaching included in a curriculum) and an objective requirement (the transmission of knowledge and skills that is not merely recreational). The teaching of 'ballroom dancing' is not exempt as it is not formal education according to the Ministry of Education. If the requirements are not met, the general rate of 21% applies.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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