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V0668-14 11 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Sports classes provided by an external company at a school are subject to the 21% standard VAT rate

A company awarded a public tender to provide sports activities in schools inquired whether its services were exempt from VAT as educational activities. The DGT ruled that the education exemption does not apply because sports practice services provided by entities other than the educational institutions themselves are not included.

The question raised

Whether the activity carried out by the winning company, which will invoice the Regional Ministry of Education, is exempt from Value Added Tax as a teaching activity.

The DGT's ruling

Services providing sports classes are not exempt from VAT when provided by companies other than educational centers. As neither the exemption for teaching nor the specific exemption for social entities is applicable, these activities are subject to the tax. Therefore, they must be taxed at the general rate of 21%.

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