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V0440-17 20 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio prestado por vía electrónica

Automated online courses subject to 21% VAT, unless classified as exempt educational services

A coaching and training company has queried whether its activities are exempt from VAT. The DGT clarifies that services provided by electronic means (automated) do not benefit from exemption, whereas teaching provided by a teacher via an electronic network may be exempt if specific requirements are met.

The question raised

Exemption of the aforementioned activity from Value Added Tax

The DGT's ruling

Services providing training content via download or access to automated platforms are services provided by electronic means and are taxed at 21%. Teaching provided by a teacher via the internet is an educational service and may be exempt if provided by authorized entities and covers subjects of official curricula. Human intervention must be the principal rather than an ancillary part to avoid classification as an electronic service.

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