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V0395-21 25 February 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio prestado por vía electrónica

VAT exemption for online training depends on whether it is classified as an electronic service or an educational service

A taxpayer has enquired whether their online training courses are subject to VAT when clients are located in the Canary Islands, Ceuta, Melilla, or the EU. The DGT clarifies that the exemption only applies if the activity constitutes an educational service involving human intervention, rather than an automated service provided by electronic means.

The question raised

Liability for Value Added Tax on services provided to natural persons and companies resident in the Canary Islands, Ceuta, Melilla, and other Member States of the European Union.

The DGT's ruling

If the service is automated distance learning (download of content or access to platforms with incidental human intervention), it is an electronically supplied service and is not exempt. If it is an educational service where the teacher uses the internet as a means of communication, it may be exempt if the entity is authorized and the subjects are included in a curriculum. The taxation location varies depending on whether the recipient is a company or an individual and whether the service is electronic or educational.

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