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V0387-26 25 February 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Dance classes exempt from VAT depend on whether activity is professional or commercial

A freelance dance instructor asks whether her classes are VAT-exempt and if the exemption continues when hiring others to teach. The DGT explains that exemption depends on whether the activity is professional or commercial, and sets out the requirements for each case.

The question raised

Whether the activity carried out by the applicant is subject to, but exempt from, Value Added Tax, and, if applicable, whether the exemption applies even when there are employees who teach certain hours of classes.

The DGT's ruling

If the activity is professional, the exemption under art. 20.one.10º requires that classes be taught by natural persons on subjects within study plans and that registration in the business activity tariff is not required. If it is a business activity (teaching center), the exemption under art. 20.one.9º requires being an authorized entity and that the teaching is not merely recreational. Regarding employees, if they provide services under a regime of labor dependency, they are not subject to the tax.

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