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V1135-22 20 May 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención

Language immersion courses are VAT exempt if subjects are part of the curriculum

A company has requested clarification on whether its language immersion courses, including accommodation and board, are VAT exempt and which IAE headings apply. The DGT ruled that exemption depends on the subjects being part of the formal education system and the accommodation being ancillary to the educational service.

The question raised

Exemption of the described activity from Value Added Tax and the corresponding heading in the Tax on Economic Activities.

The DGT's ruling

The VAT exemption applies if the teaching is provided by authorized entities and the subjects are included in the curricula of the Spanish educational system. Accommodation and catering services shall be exempt if they are eminently ancillary to the main training service. If these services are not ancillary or are provided independently using third-party services, the special regime for travel agencies shall apply. Regarding the IAE, registration must be made under the teaching headings depending on whether it is in a permanent establishment or not, and under the travel agencies heading if it manages accommodation and catering.

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