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V0275-24 29 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · actividad profesional

IAE classification and VAT for teaching depend on whether it is carried out professionally or as a business

A taxpayer has enquired whether their registration under IAE heading 933.9 is correct and if their artistic teaching services are exempt from VAT. The DGT clarifies that the nature of the activity (professional or business) determines both the IAE heading and the applicable VAT exemption, as well as the tax treatment under Personal Income Tax (IRPF).

The question raised

Whether the IAE heading in which the taxpayer is registered is correct.

The DGT's ruling

If the teaching is carried out by the natural person directly and personally, it is a professional activity (heading 826) and may be exempt from VAT if the subject is included in the curricula. If it is carried out through an organization or center, it is a business activity (heading 933.9 or 934) and the VAT exemption requires being an authorized entity and that the teaching is not merely recreational. For Personal Income Tax purposes, services provided in third-party facilities (such as city councils) are professional, whereas in one's own establishment they are business activities.

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