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V0458-15 5 February 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Professional training and retraining exempt from VAT subject to specific requirements

A non-profit association has enquired whether its training and retraining courses for social sector professionals are exempt from VAT. The DGT has ruled that the exemption depends on the activity being included in a formal curriculum and not being merely recreational in nature.

The question raised

Question posed: Value Added Tax treatment of the training services described.

The DGT's ruling

The exemption for professional training and retraining requires compliance with two requirements. The subjective requirement demands that the activity be carried out by public law entities or authorized private entities, the latter being understood as centers whose activities consist primarily of teaching included in a recognized curriculum. The objective requirement demands that the activity involves the transmission of knowledge and skills within an organizational framework, provided that it is not merely recreational and the subjects are included in the curricula of the educational system.

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