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V1244-14 7 May 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicio prestado por vía electrónica

Online training courses are only VAT exempt if they are not classified as electronically supplied services

A company has enquired whether its subsidised training courses are exempt from VAT. The DGT clarifies that the exemption does not apply to electronically supplied services, but only to educational services provided via electronic networks used as a means of communication between teacher and student.

The question raised

Question raised: Exemption or non-exemption of the aforementioned services under Article 20.One.9º of the Tax Law.

The DGT's ruling

Online teaching services are exempt educational services if the electronic network is merely a means of communication between teacher and student. If the service is automated, involves little human intervention, or consists of content downloading, it is considered a service provided by electronic means and does not qualify for exemption. For the educational exemption to be applicable, the entity must be authorized and the subjects must be part of a curriculum within the educational system.

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