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V0665-17 15 March 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Language courses with accommodation and board may be VAT exempt if they are ancillary to the teaching

A company has requested clarification on whether an intensive Spanish course that includes accommodation, meals, and laundry services is exempt from VAT. The Directorate-General for Taxes (DGT) has ruled that language teaching is exempt provided it is conducted by authorised entities and the additional services are clearly ancillary to the primary educational service.

The question raised

Exemption of the service from Value Added Tax

The DGT's ruling

The exemption under Article 20.one.9º of Law 37/1992 requires that the activity be carried out by entities of public or private law and that the teaching is not merely recreational. Accommodation, catering, and ancillary services shall be exempt provided they are clearly ancillary to the main service of language teaching. The teaching must cover subjects included in the curricula of the Spanish educational system.

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