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V1052-14 14 April 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Farm school activities may be VAT exempt if they constitute teaching included in curricula

An agricultural business owner has enquired whether their new farm school activity is exempt from VAT. The DGT indicates that the exemption depends on whether the activity constitutes formal education or social assistance.

The question raised

Question posed: VAT exemption for farm-school activity and, where applicable, the taxation regime for said tax and the applicable tax rate.

The DGT's ruling

The farm-school activity is exempt from VAT if carried out as the teaching of subjects included in curricula through an organized set of material and human resources. If it is not formal education, but is considered child or youth protection (excursions or camps), the reduced rate of 10% shall apply for persons under 25 years of age. If none of these assumptions are met, it shall be subject to the general rate of 21%.

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