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V1042-20 24 April 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Private training courses may be exempt from VAT if specific conditions are met

A physical person asks whether their cosmetic courses are subject to or exempt from VAT and whether they can deduct the tax on their expenses. The DGT states that the activity is subject to tax but may be exempt if certain educational and IAE registration requirements are met.

The question raised

Whether said provision of services would be subject to and, where applicable, exempt from Value Added Tax. Deductibility of Value Added Tax amounts incurred on expenses related to the activity.

The DGT's ruling

Private lessons provided by natural persons are exempt from VAT if the subjects are part of the official curricula and do not require registration in the business or artistic activities tariff of the IAE. If the activity is exempt, there is no right to deduct VAT amounts incurred on expenses. In the event that the activity generates a right to deduction, it must comply with the limitations and requirements of direct allocation to the activity established by law.

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