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V0523-17 1 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia social

Childcare play services may be VAT exempt if provided by a social entity

A query was raised regarding whether play-based childcare services for children aged 3 to 12 during holiday periods are exempt from VAT. The DGT ruled that the exemption depends on the nature of the service provider.

The question raised

Taxation under Value Added Tax on the described services. Exemption. Applicable tax rate.

The DGT's ruling

If the service is provided by a public law entity or a private entity of a social nature, it shall be exempt as it is a social assistance service for child protection. If the provider is a commercial company or a natural person, the service is subject to the reduced rate of 10%.

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