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V1038-19 10 May 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios prestados por vía electrónica

Automated online training services are not VAT exempt and are taxed at 21%

A company has requested clarification on whether its online sports and health training services are exempt from VAT. The DGT has ruled that if the training is automated (without direct human intervention), it is classified as an electronically supplied service and does not qualify for the educational exemption.

The question raised

Nature of the aforementioned services for Value Added Tax purposes and possibility of applying an exemption. Place of supply of the services. Turnover limit for services provided by electronic means for the purposes of their taxation.

The DGT's ruling

Automated teaching services that depend on the internet and require little human intervention are services provided by electronic means. These services are not included in the exemptions of the VAT Law and must be taxed at the general rate of 21%. Only those educational services where communication between teacher and student is the main element and the digital content is ancillary are considered exempt educational services.

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